Kyrgyzstan's economy up 11.9% in H1 2026, driven by construction and industry

Kyrgyzstan's gross domestic product (GDP) expanded by 11.9 percent year over year in the first half of 2026, reaching 960 billion soms, supported by strong growth in goods-producing industries, the services sector, and higher net taxes on products, Qazinform News Agency reports.

Kyrgyzstan's economy up 11.9% in H1 2026, driven by construction and industry
Photo credit: Kabar

According to preliminary data issued by the Kyrgyz National Statistics Committee, the country's economic growth was led by the production sector, which increased by 22.8 percent compared with the same period in 2025. The services sector grew by 6.0 percent, while net taxes on products rose by 11.7 percent.

The structure of the economy also shifted during the reporting period. The share of services in GDP declined to 50.1 percent, down 4.4 percentage points from a year earlier. Meanwhile, the share of goods-producing industries increased to 33.9 percent, up 4.2 percentage points, reflecting stronger industrial and construction activity.

Construction emerged as the fastest-growing sector, expanding by 69.6 percent year over year and increasing its share of GDP to 8.5 percent, compared with 6.0 percent in the first half of 2025.

Industrial output grew by 12.8 percent, accounting for 20.5 percent of GDP. Manufacturing remained the main driver within the sector, rising 15.1 percent, while mining increased by 12.8 percent. Water supply, waste management, and recycling activities also recorded solid growth of 16.2 percent. Electricity, gas, steam, and air conditioning supply was the only major industrial segment to contract slightly, declining 1.2 percent.

Agriculture, forestry, and fishing posted more modest growth of 4.3 percent. As a result, the sector's contribution to GDP fell to 4.9 percent, down from 5.4 percent during the same period last year.

The services sector continued to account for roughly half of the economy despite slower growth. Wholesale and retail trade, including vehicle repair, expanded by 8.5 percent, while accommodation and food services grew by 10.5 percent. Information and communications increased by 6.3 percent, transportation and storage rose 4.4 percent, and other service activities advanced 4.6 percent.

Net taxes on products, excluding subsidies, totaled 154.0 billion soms, representing 16.0 percent of GDP and contributing to the overall expansion of the economy.

Earlier, Qazinform reported Kyrgyzstan is to build 106 new water reservoirs by 2030. 

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