Domestic investment drives economic growth in Central Asia

The economies of Central Asian countries are maintaining high growth rates thanks to domestic investment – more than half of all investment comes from businesses and households, according to the Eurasian Development Bank.

Since 2023, investment in fixed capital in the region has been growing at double-digit rates, supporting domestic demand. Public finances cover around 20% of investment, debt financing accounts for 0–10%, and concessional loans from international development institutions are replacing market-based loans in Kyrgyzstan, Tajikistan and Uzbekistan.

The main sectors are transport (16%) and energy (7%), whilst agriculture and manufacturing remain underfunded.

Relying on domestic resources helps countries in the region to reduce debt risks and maintain economic stability, particularly against the backdrop of declining global foreign direct investment.