WB: Kyrgyzstan Set to Become Central Asia’s Fastest-Growing Economy

The World Bank has revised upward its economic outlook for Kyrgyzstan, projecting the country to be among the fastest-growing economies in Central Asia next year.

The updated forecast points to strong household consumption and a rapidly expanding services sector as key drivers of growth, The Caspian Post informs via Kyrgyz media.

In its latest report, the World Bank estimates that Kyrgyzstan’s GDP will grow by 6.8 per cent in 2025, with medium-term growth expected to stabilize around 5.5 per cent.

The construction sector, services industry, and robust domestic demand are cited as the primary contributors to this momentum. However, the bank also noted that investment and exports may face headwinds, particularly due to weakening re-export activity and a challenging global economic environment.

On the fiscal side, the World Bank projects a budget deficit of 2.2 per cent of GDP for 2025. Meanwhile, the current account deficit is expected to narrow to 8.3 per cent of GDP, influenced by increased imports and external market conditions.

The Asian Development Bank (ADB), while also optimistic, slightly lowered its own forecast for Kyrgyzstan’s economic growth next year - from 8.5 per cent to 8.3 per cent - reflecting a more measured outlook in light of shifting regional dynamics.