Discusses key economic indicators and trade statistics, which countries are dominant in the market, and other issues that affect trade.
The Kyrgyz Republic is a landlocked lower middle-income country in Central Asia, with an estimated GDP per capita of $1,173.6 ($4,965 PPP). At 30 percent of GDP, remittances play a large role in the local economy, as does gold export revenue (ranging from 8-13 percent of GDP) – almost entirely from the output at the Kumtor gold mine. The Kyrgyz Republic hosts a large, informal economy estimated to be the equivalent of between 25 and 72 percent of GDP. The top three industries are mining, textiles, and agriculture, but information technology (IT) and renewable energy are promising growth industries that could be attractive to U.S. investors. Due to geography and historical and linguistic ties, China, Russia, Kazakhstan, and Turkey are the country’s top trading partners. 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.
U.S. companies should consider exporting to the Kyrgyz Republic to take advantage of the strong demand for U.S. products and services. Local businesses and host governments recognize the high quality and brand reputation that U.S. firms can offer and regularly seek the support of the U.S. Embassy in connecting with trading partners in the United States. There is high demand for U.S. banking services, in particular correspondent accounts with U.S. banks. As the Kyrgyz Republic further develops its economy, including greater digitalization and internet penetration, U.S. firms – particularly those in IT - have the opportunity to establish a long-term presence in this market.