According to him, at the beginning of the economic development, the country largely relied on external investments and loans, while internal resources were virtually nonexistent.
“Over the past two years, internal investments have increased from 274 billion soms to 374 billion soms, which corresponds to a growth of 100 billion soms (about 1.5 billion dollars). External direct investments over the past five years amounted to approximately 70 billion dollars. Thus, internal investments exceed external ones by five times,” Zhailov noted.
The economist pointed out that foreign investors primarily invested in trade and the hospitality industry, seeking to quickly recoup their investments, while internal investments are directed towards the development of the industrial sector.
“If previously funds were predominantly invested in agriculture, now processing, manufacturing, mining, and construction industries are mainly financed from internal sources,” Zhailov added.
According to the expert, this transition allows Kyrgyzstan to improve its own production and reduce the economy's dependence on foreign investors.
