Published
12/03/2025, 09:56Kyrgyzstan has much more potential in industry than meets the eye. Its geography, access to EAEU markets, competitive labour costs and already established light industry create unique starting conditions for growth.
According to an EDB study, annual industrial output growth could reach $2.1 billion. Of this, $560 million would come from export growth, $790 million from import substitution, and $767 million from a multiplier effect in related sectors. The main growth areas are light industry (textiles, clothing, footwear), auto components and transport assembly for the EAEU market, pharmaceuticals and chemicals, as well as mechanical engineering and electrical and telecommunications equipment.
The development of these areas stimulates metallurgy, the agricultural sector, energy and services. Experts from the World Bank, UNIDO and OECD note that countries with small open economies can reap disproportionately high gains by changing their production structure and localising value chains. Kyrgyzstan is among such economies and is capable of making a ‘structural leap’ through processing, skills and integration with regional markets.
