Published
12/31/2024, 12:10The outgoing year of 2024 has been a pivotal for the economy of the Kyrgyz Republic. We have observed a steady growth of the gross domestic product by 9%, which indicates a return of the economy to sustainable development. Behind these figures are significant processes, which I would like to discuss in more detail.
The main drivers of growth have been the manufacturing industry, energy sector and the intensification of investment activity. The volume of investments in fixed capital increased by 47.3%, highlighting the growing confidence of investors in the country’s economy.
Trade activity has also significantly increased: trade turnover grew by 18.5%, supported by an increase in export potential and domestic consumption. Exports increased by 25.25%, while imports grew by only 1.85%, indicating a strengthening of domestic production. In the area of economic regulation, the government continued reforms aimed at supporting small and medium-sized enterprises, resulting in an 18% increase in the number of registered businesses.
Despite moderate inflationary pressure, the consumer price index reached 105.4%, which corresponds to a controlled level. The average monthly nominal wage increased by 12.25%, which helped to offset inflationary risks and support the purchasing power of the population. These achievements create a solid foundation for sustainable development and further integration of Kyrgyzstan into the global economy.
According to the National Statistical Committee, the gross domestic product (GDP) of the Kyrgyz Republic for January to November 2024 reached 1 trillion 225 billion 950.6 million KGS, which is 9% higher than last year's level. Excluding the contribution of companies involved in the development of the Kumtor deposit, the growth rate was 10.3%, demonstrating the diversification of the economy. The highest growth was observed in the manufacturing industry and energy sector. It is important to note that the growth in the energy sector, which reached 14.13%, is linked to the implementation of infrastructure modernization projects.
In 2024, the volume of investments in fixed capital increased by 47.3%, reaching 214 billion 537.6 million KGS. This growth was supported by both domestic and foreign sources of financing, with foreign investments increasing by 80%. Key sectors included mineral extraction, transportation and energy.
I believe that these projects lay the foundation for sustainable economic development and create jobs.
Trade activity in 2024 significantly increased. The trade turnover reached 1 trillion 422 billion 399.5 million KGS, increasing by 18.5%. The main driver was the growth in wholesale trade, which rose by 25.6%, indicating an increase in export potential.
At the same time, retail trade grew by 12.3% due to the increase in the purchasing power of the population. These trends indicate the positive impact of policies aimed at stimulating domestic demand.
The consumer price index increased by 5.4%, which corresponds to a moderate level of inflation. The largest price increases were observed in the services sector and for alcoholic beverages. The average monthly wage rose by 12.25%, which helps to offset inflationary pressure.
It is important to note that real income of the population continues to grow, contributing to an improvement in the quality of life.
The volume of foreign trade increased by 6.45%, totaling 13,433.4 million USD. Exports increased by 25.25%, including growth in shipments to EAEU countries. This success confirms the competitiveness of Kyrgyz products. Imports also increased, but to a lesser extent, highlighting the increasing share of domestic production.
In 2024, the government implemented reforms aimed at supporting small and medium-sized enterprises, including the adoption of a new tax code. These measures resulted in an 18% increase in the number of registered businesses. Antimonopoly regulation contributed to a reduction in prices for essential goods, positively impacting the purchasing power of the population.
As an economist, I see that 2024 has been an important milestone in the development of the Kyrgyz Republic. The reforms implemented and macroeconomic achievements strengthen the foundations for long-term growth and sustainable development. However, the country must continue its efforts to modernize infrastructure and integrate into the global economy. These tasks are crucial for ensuring further progress and enhancing the well-being of citizens.
