Kyrgyzstan's economy grows 11.1% in Jan-July 2026, SMEs lead the way

Kyrgyzstan's economy is experiencing a significant upswing, with preliminary data for January-July 2026 showing a robust 11.1% real GDP growth, reaching 1.17 trillion soms. This economic surge is broad-based, with all key sectors contributing positively. The construction sector led the charge with an impressive 60.6% increase, followed by services (6.1%) and agriculture (6%). The industrial sector also saw a substantial rise of 11.2%.

Within the industrial sphere, specific sub-sectors demonstrated remarkable expansion. Chemical production more than doubled, increasing 2.9 times, while refined petroleum products grew 1.8 times. The production of vehicles rose by 41.8%, construction materials by 33.6%, and mining by 16.9%. Pharmaceutical production saw a 13% increase, with basic metals up 8.5% and food products by 2.4%.

A key driver of this economic dynamism is the strong performance of small and medium-sized enterprises (SMEs). Their contribution to GDP has climbed to 51.4%, a significant jump from 41.5% in the previous year. The number of SMEs has grown by 6.8% to 27,300, and employment in the sector has also increased by 6.8% to 643,800 people. This growth is supported by government programs and preferential lending projects aimed at domestic entrepreneurs.

Furthermore, investment in fixed capital has hit record highs, increasing by 58.8% to 238.3 billion soms. This surge is attributed to a 1.4-fold increase in domestic investment and a 3.1-fold rise in foreign investment, signaling strong confidence in the country's economic trajectory. The government, led by Cabinet Chairman Adilbek Kasymaliev, views this economic momentum as highly positive.

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The number of small and medium-sized enterprises has increased by 6.8 percent and amounts to 27.3 thousand. The number of employed in the SME sector and individual entrepreneurship has increased by 6.8 percent, reaching 643.8 thousand people.