Economic Indicators
According to information from the National Bank, the country's economy is demonstrating high growth rates, with real GDP increasing by 11.1% by the end of 2025. The main factors contributing to this growth are the construction sector and services. Investments in fixed capital are also showing growth, which is linked to increased budget financing. Consumer demand is supported by the rise in real incomes, the influx of remittances, and active consumer lending.Inflation Trends
As of January 16, inflation in Kyrgyzstan stood at 9.4%. According to the regulator, there is a slowdown in the growth of prices for food products. At the same time, prices in the non-food sector and services remain high, influenced by external factors. A significant role in inflation is played by the revision of tariff policies and increased domestic demand.The agency noted: "The main priority of monetary policy remains the return of inflation to target levels of 5-7% in the medium term, so current monetary conditions remain tight."
The National Bank is actively conducting sterilization operations in the context of high liquidity in the banking sector, which allows for the regulation of the money supply in the economy. The interbank benchmark interest rate BIR is formed near the lower boundary of the National Bank's interest corridor, and the domestic foreign exchange market remains stable.However, inflation continues to be influenced by external factors, notes the National Bank. Global food and commodity markets are demonstrating high volatility, and geopolitical instability maintains inflationary pressure both in Kyrgyzstan and among its main trading partners, which is reflected in import prices. Domestic inflationary processes are largely driven by non-monetary factors, such as planned adjustments to regulated tariffs and increased domestic demand.
These circumstances confirm the need to maintain the current monetary policy conditions until sustainable prerequisites for slowing inflation are established. Therefore, the National Bank's key rate remains at 11%.In the event of threats to price stability, the National Bank does not rule out the possibility of changing its monetary policy.
