Discussions regarding Kyrgyzstan’s economy often involve people basing their views on personal impressions. While online debates can be engaging, they are frequently highly subjective. Therefore, it is best to assess the state of the economy based on professional expert opinion.
In this context, it is important to highlight the recently published rating from Moody’s, one of the world’s leading agencies. The report outlines key parameters of Kyrgyzstan’s development and assesses the state of the country's economy.
Moody’s noted that the republic is demonstrating steady growth and actively diversifying its economy. GDP per capita is rising, infrastructure investment has increased significantly, and the state of public finances has improved. A decline in the government debt-to-GDP ratio has also been observed. Based on these factors, the agency upgraded Kyrgyzstan’s credit rating from B3 to B2, with a "stable" outlook.
This assessment strengthens Kyrgyzstan’s position in international financial markets, boosts investor confidence, and expands opportunities to secure long-term financing on more favorable terms.
According to the presidential administration, "a higher sovereign rating creates additional opportunities for Kyrgyz banks and companies to access international capital markets, undergo international credit rating assessments, and raise funds through Eurobonds and other financial instruments."
Economists note that the credit rating upgrade objectively reflects positive changes taking place in Kyrgyzstan. In comments to Kabar, Doctor of Economics Tolonbek Abdyrov highlights that assessments by international experts incorporate key metrics that serve as benchmarks for international capital.
"It is particularly significant that Moody’s points not only to rapid economic growth but also to a reduction in the debt burden and the strengthening of public finances. Of course, we must view this with a degree of restraint; a B2 rating is not the highest possible mark. Yet, there is room for improvement, and we still have several rungs to climb. The crucial point is that no one denies the positive changes taking place in Kyrgyzstan’s economy.
First, we can now count on cheaper external borrowing, which is the most important outcome. For international investors, a sovereign rating is a key benchmark in capital markets. If the assessed risk is lower, investors are theoretically willing to provide funds at a lower risk premium.
Second, this matters not only to the state but also to our banks and large trading companies. Why? A sovereign rating often serves as a vital reference point for assessing corporate risk. Consequently, it becomes easier for our financial institutions and businesses to access various bonds, loans, and other sources of financing.
Third, it sends a direct signal to investors. When a foreign company considers building a factory, a power plant, or a logistics facility, it evaluates not only the project's potential profit but also the country risk. A rating upgrade tells investors that the state is stable and that the macroeconomic and fiscal situation has improved.
We must understand that Moody’s raised the rating because there is positive momentum," notes Tolonbek Abdyrov.
Facts are stubborn things. Figures and calculations indicate that Kyrgyzstan’s external debt-to-GDP ratio has dropped from 70% in 2020 to less than 34%, meaning the republic has the financial capacity to confidently service its external borrowings; loans aimed at economic development are generating growth and revenue. The halving of the debt burden on the budget has freed up significant resources that are now being invested in development.
President Sadyr Zhaparov has stated that the new Kyrgyzstan looks confidently toward the future, a sentiment he expressed recently at the opening of Bishkek Arena.
"Over the past six years, 1,075 facilities have been built in Kyrgyzstan, including schools, kindergartens, hospitals, cultural institutions, and other social facilities. Some 521 plants and factories have been launched.
Kyrgyzstan will move only forward; our economy will grow, and we will not stop. The most important things are stability and unity," Sadyr Zhaparov emphasized.
It is not just a matter of assessments by Moody’s or other rating agencies.
In recent years, Kyrgyzstan has consistently held a leading position in terms of development pace, demonstrating impressive results with annual GDP growth reaching 10%. The changes taking place in the republic are evident: the population's standard of living is gradually rising, and infrastructure and the social sector are developing. The expert community is unanimous in the view that Kyrgyzstan is on a trajectory of steady growth, the current state of the economy and prevailing trends point to continued long-term, stable growth.
