Economic growth in Kyrgyzstan is projected to moderate but remain robust at 8.5% in 2025 and 8.6% in 2026, according to the Asian Development Outlook (ADO) April 2025 report, the Asian Development Bank’s (ADB) flagship economic publication.
“This growth forecast reflects strong private consumption, steady gains in remittances, and ongoing government investment projects,” said ADB Country Director for the Kyrgyz Republic Zheng Wu. “Sustaining the country’s transition toward a more private sector-led economic model is imperative to maintain its development trajectory and boost productivity. In this context, ADB remains fully committed to supporting structural reforms and investments that strengthen long-term growth and economic resilience.”
Following a decline in 2024, inflation is expected to rise to 6.0% in 2025 and 7.8% in 2026, driven by robust domestic demand, rising utility tariffs, likely currency depreciation, continued import dependence, and elevated inflation expectations. In response, the central bank is likely to maintain a tight monetary policy stance, while closely monitoring inflation trends and continuing foreign exchange market interventions as needed.
According to ADO April 2025, the private sector in Kyrgyzstan continues to face significant structural constraints—including energy infrastructure gaps, limited financial intermediation, and high informality in the economy—that impede its development and limit its potential as a driver of long-term growth.
The growth forecasts were finalized prior to the 2 April announcement of new tariffs by the US administration, so the baseline projections only reflect tariffs that were in place previously.
