The Kyrgyz economy continues to grow strongly, driven mainly by investment and consumer demand, according to the EDB Macroeconomic Review for August 2024.
According to the report, investment activity increased by 43.3% in January-June 2024 compared to the same period last year, remaining a key driver of economic growth.
Consumer activity also picked up significantly, with wholesale and retail trade up by 33% year-on-year after growing by 18.3% in January-June 2024. This uptick is believed to be related to the peak of the tourist season.
Growth in agriculture also accelerated, reaching 6.6% compared to 3.3% in January-June 2024.
Industrial production increased by about 1% in January-June 2024, although the pace of growth slowed for the fifth month in a row. For comparison, in January 2024, industrial production growth was 16.5%. The slowdown is due to a reduction in the output of basic metals and a decrease in the volume of mineral extraction.
The food industry maintains steady growth, remaining a key driver of the manufacturing industry. Another growth factor is the increase in the production of non-metallic mineral products (cement, slate, concrete), which is stimulated by high activity in the construction sector.
The growth of investment in fixed assets in Kyrgyzstan amounted to 54.7% in January-June 2024. The bulk of capital investment was directed to the mining industry, where the volume of investment increased by 1.7 times compared to the same period last year. Companies are actively updating their funds at their own expense, and also using foreign loans and financing from foreign direct investors.
In the energy sector, capital investment increased by 1.9 times, which is due, among other things, to the commissioning of a number of small hydroelectric power plants, which will increase the capacity in the industry. In the transport sector, investment growth also amounted to 1.9 times, which is provided mainly through financing from international development institutions.
Source: https://economist.kg/ekonomika/2024/08/21/inviestitsii-i-potrieblskii-ostaiutsia-kliuchievymi-draivierami-rosta-ekonomiki-kyrghyzstana/