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Kyrgyzstan Economy Profile 2017

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Economy - overviewKyrgyzstan is a landlocked, mountainous, lower middle income country with an economy dominated by minerals extraction, agriculture, and reliance on remittances from citizens working abroad. Cotton, wool, and meat are the main agricultural products, although only cotton is exported in any quantity. Other exports include gold, mercury, uranium, natural gas, and - in some years - electricity. The country has sought to attract foreign investment to expand its export base, including construction of hydroelectric dams, but a difficult investment climate and an ongoing legal battle with a Canadian firm over the joint ownership structure of the nation’s largest gold mine deter potential investors. Remittances from Kyrgyz migrant workers, predominantly in Russia and Kazakhstan, are equivalent to over one-quarter of Kyrgyzstan’s GDP.

Following independence, Kyrgyzstan rapidly implemented market reforms, such as improving the regulatory system and instituting land reform. In 1998, Kyrgyzstan was the first Commonwealth of Independent States (CIS) country to be accepted into the World Trade Organization. The government has privatized much of its ownership shares in public enterprises. Despite these reforms, the country suffered a severe drop in production in the early 1990s and has again faced slow growth in recent years as the global financial crisis, declining oil prices, and regional economic headwinds have damaged economies across Central Asia. The Kyrgyz government remains dependent on foreign donor support to finance its annual budget deficit of approximately 4-5% of GDP.

Kyrgyz leaders hope the country’s August 2015 accession to the Eurasian Economic Union (EAEU) will bolster trade and investment, but slowing economies in Russia and China and low commodity prices continue to hamper economic growth. While joining the EAEU has increased Kyrgyz labor mobility within member states, large scale trade and investment pledged by Kyrgyz leaders has been slow in developing since accession. Kyrgyz entrepreneurs and politicians alike often contend that non-tariff measures imposed by other EAEU member states, particularly Kazakhstan, are negatively impacting sectors of the Kyrgyz economy that enjoy a comparative advantage, such as meat and dairy production. Since acceding to the EAEU, the Kyrgyz Republic has continued harmonizing its laws and regulations to conform to Union standards, though many local entrepreneurs have criticized this process as disjointed and incomplete. The keys to future growth include progress in fighting corruption, improving administrative transparency, restructuring and diversifying domestic industries, and attracting foreign aid and investment.
GDP (purchasing power parity)$21.01 billion (2016 est.)
$20.55 billion (2015 est.)
$19.87 billion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$5.794 billion (2016 est.)
GDP - real growth rate2.2% (2016 est.)
3.5% (2015 est.)
4% (2014 est.)
GDP - per capita (PPP)$3,500 (2016 est.)
$3,400 (2015 est.)
$3,400 (2014 est.)
note: data are in 2016 dollars
Gross national saving18.5% of GDP (2016 est.)
19.3% of GDP (2015 est.)
9.3% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 77.9%
government consumption: 18.8%
investment in fixed capital: 25.2%
investment in inventories: 2.5%
exports of goods and services: 30.6%
imports of goods and services: -55% (2016 est.)
GDP - composition by sectoragriculture: 17.9%
industry: 25.9%
services: 56.2% (2016 est.)
Population below poverty line32.1% (2015 est.)
Labor force2.778 million (2016 est.)
Labor force - by occupationagriculture: 48%
industry: 12.5%
services: 39.5% (2005 est.)
Unemployment rate8% (2013 est.)
8.1% (2014 est.)
Unemployment, youth ages 15-24total: 13.4%
male: 12%
female: 15.8% (2013 est.)
Household income or consumption by percentage sharelowest 10%: 4.4%
highest 10%: 22.9% (2014 est.)
Distribution of family income - Gini index33.4 (2007)
29 (2001)
Budgetrevenues: $2.04 billion
expenditures: $2.354 billion (2016 est.)
Taxes and other revenues35.2% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-5.4% of GDP (2016 est.)
Public debt69.5% of GDP (2016 est.)
68.8% of GDP (2015 est.)
Inflation rate (consumer prices)2.9% (2016 est.)
6.5% (2015 est.)
Central bank discount rate5% (31 December 2016)
8% (31 December 2015)
Commercial bank prime lending rate23.3% (31 December 2016 est.)
24.25% (31 December 2015 est.)
Stock of narrow money$1.179 billion (31 December 2016 est.)
$928.2 million (31 December 2015 est.)
Stock of broad money$1.333 billion (31 December 2015 est.)
$1.399 billion (31 December 2014 est.)
Stock of domestic credit$980.7 million (31 December 2016 est.)
$831.4 million (31 December 2015 est.)
Market value of publicly traded shares$165 million (31 December 2012 est.)
$165 million (31 December 2011 est.)
$79 million (31 December 2010 est.)
Agriculture - productscotton, potatoes, vegetables, grapes, fruits and berries; sheep, goats, cattle, wool
Industriessmall machinery, textiles, food processing, cement, shoes, sawn logs, refrigerators, furniture, electric motors, gold, rare earth metals
Industrial production growth rate0% (2016 est.)
Current Account Balance-$615 million (2016 est.)
-$740 million (2015 est.)
Exports$1.453 billion (2016 est.)
$1.61 billion (2015 est.)
Exports - commoditiesgold, cotton, wool, garments, meat; mercury, uranium, electricity; machinery; shoes
Exports - partnersSwitzerland 26.1%, Uzbekistan 22.6%, Kazakhstan 20.8%, UAE 4.9%, Turkey 4.5%, Afghanistan 4.5%, Russia 4.2% (2015)
Imports$3.146 billion (2016 est.)
$3.648 billion (2015 est.)
Imports - commoditiesoil and gas, machinery and equipment, chemicals, foodstuffs
Imports - partnersChina 56.6%, Russia 17.2%, Kazakhstan 10% (2015)
Reserves of foreign exchange and gold$1.838 billion (31 December 2016 est.)
$1.778 billion (31 December 2015 est.)
Debt - external$7.728 billion (31 December 2016 est.)
$7.37 billion (31 December 2015 est.)
Stock of direct foreign investment - at home$4.897 billion (31 December 2016 est.)
$4.347 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$331.4 million (31 December 2016 est.)
$331.4 million (31 December 2015 est.)
Exchange ratessoms (KGS) per US dollar -
69.08 (2016 est.)
64.462 (2015 est.)
64.462 (2014 est.)
53.654 (2013 est.)
47.01 (2012 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on July 9, 2017

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