Bishkek, June 3, 2026 /Kabar/. The economy of the Kyrgyz Republic is expected to maintain strong growth in the coming years, although the pace is projected to moderate amid growing external challenges, according to the latest Regional Economic Prospects report released by the European Bank for Reconstruction and Development (EBRD).
The EBRD noted that the Kyrgyz economy continued to expand robustly in the first quarter of 2026, supported by strong performance in industry, construction, and trade. Fixed capital investment increased by 25.5 percent year-on-year, driven by significant investments in infrastructure, energy, and housing projects.
According to the report, Kyrgyzstan's gross domestic product (GDP) is forecast to grow by 8.7 percent in 2026 and 7.0 percent in 2027. While these figures remain among the highest in the EBRD regions of operation, they represent a moderation compared to recent growth rates.
The bank highlighted several risks that could affect the country's economic outlook. The most significant short-term challenge is the European Union's 20th sanctions package, introduced in late April, which imposes restrictions on exports of dual-use goods to Kyrgyzstan and tightens oversight of financial and logistics activities. Higher energy prices and a slowdown in the Russian economy could also negatively impact growth prospects.
Despite these challenges, the EBRD emphasized that economic activity across Central Asia remains resilient, supported by strong domestic demand and investment. The report noted that continued reforms and efforts to strengthen resilience to external shocks will be crucial for sustaining long-term growth.
The EBRD projects that Central Asia and Mongolia will remain among the fastest-growing regions in its areas of operation, with average growth rates of 5.6 percent in 2026 and 5.3 percent in 2027.