Bishkek: Kyrgyzstan has reported a striking 10% year-on-year growth in its Gross Domestic Product (GDP) for the first nine months of 2025, with the economy reaching approximately $13.7 billion, according to the country’s state statistics committee. This growth has been largely driven by key sectors such as construction, industry, trade, and mining. Notably, the construction sector alone saw a near 30% expansion, while wholesale and retail trade rose by 11%. Meanwhile, public debt increased to $8.4 billion as of July 31, marking a $1.9 billion rise from the previous year.
Experts attribute Kyrgyzstan’s economic surge to the broader geopolitical shifts following the war in Ukraine. Western sanctions on Russia have disrupted traditional trade flows, prompting Russian companies to reroute their supply chains through third countries. As a member of a customs union with Russia, Kyrgyzstan has emerged as a preferred hub for these operations. Azamat Akeneev, chief economic expert at the National Institute for Strategic Studies, described Kyrgyzstan as an “offshore hub” for Russian businesses, leveraging the country’s financial system to circumvent sanctions. Several Kyrgyz banks have faced sanctions from the U.S. and UK for allegedly facilitating these activities.
The country’s economic developments unfold against a politically charged backdrop, with snap parliamentary elections scheduled for November 30. Analysts suggest the elections are intended to consolidate the authority of President Sadyr Japarov, whose populist and nationalist governance has increasingly curtailed opposition in what was once considered Central Asia’s most democratic nation.
Kyrgyzstan’s performance in 2025 highlights its strategic positioning amid global supply chain realignments. While the country benefits from an influx of trade and investment linked to the Ukraine conflict, it also faces international scrutiny and domestic political challenges that will shape its future economic and geopolitical trajectory.