Small and medium-sized businesses account for almost half of Kyrgyzstan's GDP

The JIA Business Association, in collaboration with the Entrepreneurship Support Centre, presented the results of a study entitled ‘Assessment of the impact of small and medium-sized enterprises on Kyrgyzstan's GDP’ for 2024. Taking into account the shadow economy, the sector accounts for 46% of the country's gross domestic product, which is 16% higher than official data.

As of 2024, there are 16,800 small and medium-sized enterprises and 476,100 individual entrepreneurs operating in Kyrgyzstan. The sector provides employment for 25% of the economically active population, with trade (35%) and agriculture (28%) remaining the main areas of activity.

Small and medium-sized businesses account for more than half of the country's exports and about a third of its imports. The level of shadow activity in the sector has fallen to 51% thanks to the digitalisation of tax administration and measures to legalise businesses.

Experts note that a 5-10% reduction in the shadow economy could lead to additional growth in GDP and tax revenues. The main challenges for development remain legislative instability, administrative barriers and limited access to finance.

The study covered seven regions of Kyrgyzstan, as well as the cities of Bishkek and Osh. A total of 760 businesses took part in the study. The work was carried out with financial support from the OSCE Programme Office in Bishkek.