The economy of Kyrgyzstan has maintained high growth rates in 2024, reaching a level of 9 percent according to preliminary data. The Country Director of the Asian Development Bank Zheng Wu told.
Such indicators, according to him, were possible due to the government’s initiatives to stimulate economic activity and modernize infrastructure.
Industrial growth accelerated to 5.6 percent from 4.8 percent in 2023.
Increased output was registered in manufacturing despite a decrease in non-ferrous metal production at a large gold mine.
Diversification of manufacturing, which included the commissioning of new capacities in oil refining, small hydropower and automobile assembly, also contributed to the positive trend.
The construction sector showed growth of 18 percent, slightly behind the 2023 figure of 22.7 percent. At the same time, agriculture showed a strong recovery, expanding by 6.3 percent after growing by just 0.6 percent in 2023.
Favorable weather conditions and higher crop yields played a key role in this recovery.
The services sector also showed an acceleration in growth to 9.3 percent from 7.9 percent in 2023.
Wholesale and retail trade grew by 16.3 percent.
On the demand side, growth was supported by higher incomes and investment. Private consumption grew by 10.3 percent in the first nine months of 2024, but this figure is lower than 16.9 percent in the same period of 2023 due to higher household savings.
An 18.6 percent increase in net remittances, a 77.8 percent increase in consumer lending, and a 7.1 percent increase in real wages also contributed to growth.
Investments continued to grow, reaching 24.8 percent, although slowing slightly from 29.2 percent in 2023.
The growth in investment was driven by the government’s «100 Industrial Enterprises — 2024» initiative and an increase in both domestic (by 27.6 percent) and external (by 11.5 percent) financing.
Public investment increased by 130 percent. They were directed mainly to the extractive industry, transport, energy and housing construction.
Inflation has also declined significantly.
Average annual inflation has more than halved, from 10.8 percent in 2023 to 5 percent in 2024. This has kept inflation within the target range of the National Bank of the Kyrgyz Republic (5-7 percent). The decline in inflation is due to lower commodity prices and a stable exchange rate.
