Central Asia’s economy has exceeded $500 billion, but the countries are still competing with one another — Novikov

The combined GDP of the Central Asian countries has exceeded $500 billion; however, the region’s future growth will depend on whether these states can move from competing for investment to industrial cooperation. This was stated by Artem Novikov, head of the Russian-Kyrgyz Development Fund, at an off-site session of the ‘Primakov Lectures’ held as part of the 62nd Kyrgyz-Russian Economic Forum at Issyk-Kul.

According to him, the region’s economies are growing by an average of 6–7 per cent per year, significantly outpacing global average growth rates. In Kyrgyzstan, growth stands at 10 per cent or more. The main drivers remain domestic consumption, infrastructure projects, the services sector and the reorientation of international logistics routes.

At the same time, the similar structure of their economies means that Central Asian countries are competing for the same investments, markets and transit flows.

“We need to move towards sectoral specialisation. We must develop each country’s strengths and create shared production chains in the energy, pharmaceutical, food and industrial sectors,” Novikov suggested.

In his view, transport corridors should bring the region more than just transit revenues. Industrial parks, logistics centres and export clusters need to be established along the new routes.

Novikov cited the RKFR as an example of investment support for the economy.

“To date, the Fund has financed over 3,800 projects totalling $1.2 billion. Over the last five years, its loan portfolio has increased 2.7-fold to $580 million,” he explained.

By the end of 2025, the RKFR had disbursed a record $239 million, and in the first half of 2026, it had already disbursed more than $150 million. The Fund’s equity capital reached $607 million, which corresponds to 18.3 per cent of the total capital of Kyrgyzstan’s banking system.