Kyrgyzstan has the potential to increase its annual industrial output by $2.1 billion through the development of its manufacturing sector and deeper integration with the markets of the Eurasian Economic Union. This is stated in an analytical report by the Eurasian Development Bank, Economist.kg reports.
According to the study “Potential for Developing High-Value Manufacturing in the Eurasian Region,” the estimate includes $560 million in potential export growth, $790 million in import substitution, and $767 million in multiplier effects across related sectors of the economy.
The EDB emphasizes that Kyrgyzstan’s industrial sector has significantly greater potential than current output levels suggest. A combination of advantageous geography, access to EAEU markets, low labor costs, and a well-developed light industry creates conditions for accelerated growth.
Key areas of development include light industry — textiles, clothing, and footwear — which remain the core of Kyrgyzstan’s exports. Promising opportunities also exist in the production of auto parts and vehicle assembly for EAEU needs, including light commercial vehicles and specialized machinery.
Additional opportunities are linked to the development of pharmaceuticals, the chemical industry, packaging materials, and basic chemicals essential for agriculture and food processing. There is also potential in machinery production and the manufacture of electrical and telecommunications equipment, particularly for sectors related to energy, construction, and digital infrastructure.
According to assessments by the World Bank, UNIDO, and OECD, expanding processing industries in small open economies creates a chain-reaction effect, boosting metallurgy, agriculture, energy, and services. Analysts believe Kyrgyzstan is among the countries capable of making such a structural leap through enhanced processing capacity and deeper integration with regional markets.
CentralasianLIGHT.org
December 2, 2025