BAKU, Azerbaijan, June 18. Kyrgyzstan’s economy
is expected to grow by 10.2% in 2026, supported by higher
investment activity in industry, energy and housing
construction.
This is stated in the Eurasian Development Bank’s latest
macroeconomic outlook.
The EDB forecasts that Kyrgyzstan’s real GDP growth will remain
strong after reaching 11.5% in 2024 and an estimated 11.1% in 2025,
before moderating to 8.3% in 2027 and 7.5% in 2028.
“In 2026, the economy of the Kyrgyz Republic will maintain
regional leadership in GDP growth — 10.2%. This dynamic will be
formed by increasing investments in industry and energy, as well as
housing construction,” the EDB said.
According to the report, economic activity in Kyrgyzstan
continues to be supported by strong domestic demand. The bank noted
that GDP growth reached 12.4% year-on-year in January–April
2026.
The EDB said that domestic demand remains a key driver of
growth, with trade turnover increasing by 11.6% year-on-year and
investment activity rising by 69.7% during the first months of
2026.
Industrial production has also become an additional growth
driver, contributing 2.86 percentage points to economic expansion
due to the recovery of output in key metals.
At the same time, the EDB expects inflationary pressure to
increase in the near term. Inflation in Kyrgyzstan is forecast to
reach 11.5% by the end of 2026, compared with 9.4% in 2025, before
slowing to 9.2% in 2027 and 7.0% in 2028.
Furthemore, the bank expects the average exchange rate of the
Kyrgyz som at around 88 soms per US dollar in 2026, with gradual
changes to 89 soms in 2027 and 90 soms in 2028.
The EDB also forecasts an increase in the average interest rate
to 11.8% in 2026, from 9.3% in 2025, with rates expected to remain
at 12.0% in 2027–2028.
The Eurasian Development Bank forecast confirms that Kyrgyzstan
continues to benefit from a broad investment cycle spanning
industry, energy, and construction. Strong investment activity is
contributing not only to faster economic growth, but also to the
creation of new productive capacity, laying the groundwork for more
sustainable medium-term development.
At the same time, rising inflation remains one of the key
challenges for the economy, as robust domestic demand and
investment activity increase price pressures. In this environment,
the ability of economic policy to maintain a balance between
supporting growth and preserving macroeconomic stability will be a
critical factor.
