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.
