Bishkek, May 29, 2026. /Kabar/. The unprecedented rise in geopolitical tensions and global economic turbulence are forcing central banks to pay special attention to the situation in commodity and financial markets, as well as the rapid rise in global food prices observed since February 2026. Azat Kozubekov, Deputy head of National Bank of Kyrgyzstan told at meeting of finance ministers and central bank chairmen of SCO countries.
He noted that despite external challenges, the Kyrgyz Republic's economy continues to demonstrate high growth rates.
"Over the past four years, economic growth has exceeded 9%, placing the country among the leaders in Central Asia in terms of economic development. In the first four months of 2026, real economic growth was 12.4%. Construction, industry, and services are key growth drivers. Price dynamics, both in Kyrgyzstan and in the countries of the region and SCO member states, are largely non-monetary in nature," the deputy head said.
Kozubekov emphasized that, amid external challenges, global energy prices remain a key factor influencing price stability. He believes fluctuations directly impact the cost of production and transportation of food and industrial products.
"Considering the high share of imported goods in Kyrgyzstan's consumption structure, changes in the global economic environment inevitably impact domestic prices." "While in previous years inflation remained within the National Bank's medium-term target of 5-7%, since mid-2025 the country has seen an acceleration of inflation, driven primarily by external economic and geopolitical factors," he noted.
According to his data, as of the end of April 2026, annual inflation reached 10.9%. "Under these conditions, the National Bank continues to adhere to a tight monetary policy. Since July 2025, the key rate has been consistently increased from 9% to 12%," he added.
According to Kozubekov, these measures are aimed at creating sustainable conditions for slowing inflation.
"The relatively stable dynamics of the Kyrgyz som exchange rate contribute to maintaining inflation expectations within target limits. The National Bank is paying special attention to maintaining an adequate level of international reserves." Kyrgyzstan's gold and foreign exchange reserves currently exceed USD 9 billion, equivalent to approximately 6.5 months of imports.
The country's banking sector remains stable. By the end of 2025, the loan portfolio and deposit base continued to grow at double-digit rates. This positive trend will continue in 2026.
At the same time, the level of currency risks remains moderate. Dollarization of the economy continues to decline: the share of loans in national currency exceeds 80%, and the share of deposits is approximately 70%. This reflects the effectiveness of the current monetary policy and helps reduce the economy's dependence on external currency fluctuations," Kozubekov said.