High turnover, low returns: how Kyrgyzstan's real sector makes money

In the first quarter of 2025, Kyrgyzstan's real sector enterprises earned KGS 552 billion. However, almost 80% of this amount went to cover the cost of production and goods. Moreover, half of all revenue is spent on reselling goods without processing, i.e. without added value.

This indicates that a significant part of the country's business is still based on simple commodity turnover rather than production. Such schemes are less sustainable: the higher the purchase prices for raw materials or finished goods, the less profit remains within the country.

Despite high costs, enterprises managed to maintain a moderate operating profit of about 10%.

This was helped by the fact that businesses kept administrative and distribution costs under control. As mentioned earlier, companies need to move from trade to processing in order to grow their revenues. Even partial localization of production can significantly increase profits and the stability of the economy as a whole.