Kyrgyzstan Posts Strong 13.1% GDP Growth in Q1 2025 Amid Investment Boom

Kyrgyzstan Posts Strong 13.1% GDP Growth in Q1 2025 Amid Investment Boom

Report By Safarti Tarjuman Business Desk

The Kyrgyz Republic reported robust economic growth in the first quarter of 2025, with gross domestic product (GDP) rising by 13.1%, according to the country’s Ministry of Economy and Commerce.

The ministry’s latest economic report highlights significant gains in key sectors, including a 71% surge in food industry output and a 69% expansion in the construction sector. Notably, investments in fixed capital skyrocketed by 90%, signaling heightened confidence in the domestic economy.

“Kyrgyz businesses are adapting efficiently to external challenges, with investment-driven growth leading the way,” the ministry stated.

Investment-Fueled Growth

Between January and March 2025, approximately 93% of total investment was channeled into critical sectors such as:

• Mining and processing industries
• Information and communication technologies
• Electricity and gas supply
• Residential construction
• Educational infrastructure

This sharp increase in capital investment significantly boosted the country’s economic momentum.

Services Sector Remains the Economic Backbone

Despite strong industrial and construction output, services continued to dominate the national economy, contributing 4.5 percentage points to the GDP. Within the sector:

• Trade accounted for 27.4%
• Transport services made up 10.3%
• Financial and insurance services added another 10.3%

These figures reaffirm Kyrgyzstan’s ongoing transition toward a service-driven economy, supported by rising consumer demand and expanded logistics networks.

Moderate Inflation, Rising Consumer Prices

Annual inflation remained under 7% in Q1 2025, with consumer goods prices climbing 3.5% on average during the same period. The government continues to monitor inflationary pressures while promoting policies that stimulate sustainable growth.

Economic analysts are optimistic about Kyrgyzstan’s trajectory for the rest of the year, with ongoing regional initiatives, such as infrastructure modernization and climate resilience projects, expected to further accelerate development.