Kyrgyz Republic - Market OverviewKyrgyz Republic - Market Overview
The Kyrgyz Republic is a lower middle income country, with an estimated GDP per capita of $1,220.5 ($3,735 PPP) . The economy remains heavily dependent on remittances from Russia (over 32.6% of GDP in 2018), and revenue from gold exports (ranging from 8-10% of GDP) – almost entirely from output at the Kumtor gold mine. The Kyrgyz Republic hosts a large, informal economy estimated at up to 24% of GDP. Trade with and investment from Russia and China remain important contributors to the Kyrgyz economy. Keys to sustainable future growth include progress in fighting corruption, improving transparency in business permit issuance and taxation, addressing persistent energy issues, and attracting new sources of foreign investment while decreasing reliance on international donors.
The Kyrgyz Republic is still undergoing an economic transition to the Eurasian Economic Union (EAEU). The accession process has altered economic conditions, as cheaper goods from other EAEU member states continue to impact Kyrgyz domestic industries. EAEU accession also introduced new regulatory hurdles and led to an increase in non-tariff measures, to which the Kyrgyz government and businesses alike have struggled to adapt. Persistent reliance on Russia as a source of remittances, imports, and government financing subjects the Kyrgyz economy to Russian influence and external shocks.