In 2023, the volume of foreign direct investment (FDI) in Kyrgyzstan’s economy reached $654.6 million, according to a report by the National Statistical Committee of Kyrgyzstan, as reported by Tazabek.
China was the largest investor in Kyrgyzstan, contributing $221.5 million, which accounted for 29.7% of total investments. Russia invested $192.8 million, Turkey - $71.3 million, Kazakhstan - $48.9 million, and the Netherlands - $33.1 million.
The total inflow of investments from non-CIS countries amounted to $456.6 million.
The National Statistical Committee of Kyrgyzstan reports that in the first nine months of 2024, FDI inflows into Kyrgyzstan reached $746.9 million, $92.3 million more than in the same period of 2023.
This indicates increased investment activity and growing confidence of foreign investors in the country’s economy.
Structure of Foreign Investments in 2024
- China: Maintained its leading position with investments of $221.5 million (29.7% of total investments).
- Russia: Invested $192.8 million, ranking second with a 25.8% share.
- Turkey: Contributed $71.3 million (9.6% of total investments).
- Kazakhstan: Invested $48.9 million (6.6% of total inflow).
- Netherlands: Contributed $33.1 million (4.4% of total investments).
In 2024, 61.1% of total FDI came from non-CIS countries, highlighting geographical diversification and strong international investor interest in Kyrgyzstan.
Sectoral Distribution of Investments
The majority of foreign direct investments in 2024 were directed into the following sectors:
- Manufacturing industry: Attracted 37.7% of total investments, reflecting interest in developing the production sector.
- Trade: Received a significant share of investments, indicating growth in the consumer market and trade operations.
- Mining: Remains attractive to investors despite fluctuations in investment volumes.
- Financial sector: Continues to attract foreign capital, supporting the banking system and financial services.
The growth of investments in manufacturing suggests an effort to boost local production and reduce dependence on imports.
Regional Distribution of Investments
In 2024, the highest volume of foreign investments was directed to the following regions of Kyrgyzstan:
- Bishkek: Attracted 50% of total FDI ($229.3 million).
- Chuy region: Received 21% of investments ($96.6 million).
- Jalal-Abad region: Attracted 14% of total investments ($65.8 million).
The capital and economically developed regions of Kyrgyzstan continue to lead in attracting investments. However, there is a growing trend toward more balanced capital distribution across the country.
Despite positive dynamics, FDI accounts for only 6.6-7% of Kyrgyzstan’s GDP, which is half of the target level of 13%.
To achieve this goal, it is necessary to further improve the investment climate, develop infrastructure, and ensure the stability of the legal system, according to the report by the National Statistical Committee of Kyrgyzstan.
CentralasianLIGHT.org
February 26, 2025