BAKU, Azerbaijan, April 29. Central Asia is experiencing a significant surge in household credit growth, with the Kyrgyz Republic standing out as a regional leader, according to the latest economic outlook from the World Bank, Trend reports.
Driven by strong consumer demand and ample bank liquidity, real credit to households in Eastern Europe and Central Asia (excluding Türkiye) grew by 15% on average in 2024, up from 11% in 2023. Central Asia and the South Caucasus were the primary engines of this acceleration, the report notes.
In Kyrgyzstan, the boom has been particularly pronounced. As of January 2025, consumer loans grew by over 85% in nominal terms, making them the largest share of total bank lending. Consumer credit now accounts for roughly 30% of total lending—nearly double the 16% share observed two years ago.
This rapid expansion has been fueled in part by a sharp rise in liquidity. Nonresident deposits in the Kyrgyz banking sector have nearly quadrupled since mid-2022, while corporate deposits surged nearly 60% year-on-year as of January 2025.
In contrast, credit growth in Uzbekistan remained subdued due to a tighter monetary policy, underscoring the diverging financial dynamics within the region.
The World Bank warns that while credit growth supports household spending and economic activity, it also raises concerns about financial stability if not carefully managed.
