Economic Growth - The Times Of Central Asia

Viewing results 1 - 6 of 130

tourism industry

Kyrgyzstan Earned Almost $1.1 Billion from Tourism in 2025

Kyrgyzstan’s tourism industry continued to expand in 2025, remaining an important contributor to the country’s economic growth. According to the National Statistical Committee, revenue from foreign visitors reached $1.098 billion in 2025, up from $1.016 billion in 2024. Tourism accounted for 3.8% of GDP, compared to 3.6% the previous year. At the same time, Kyrgyz citizens spent $564 million on travel abroad. As of January 1, 2026, the country had 148,100 registered tourism-related businesses. Revenue from passenger transportation serving tourists across all modes of transport totaled nearly 17.3 billion soms (approximately $197 million), compared to 16.9 billion soms in 2024. Kyrgyzstan’s main tourist attractions include Lake Issyk-Kul and its mountain ski resorts, with the largest and most popular located in Karakol. In recent years, more than 95% of foreign tourists have come from neighboring Central Asian countries and Russia. According to the Tourism Development Fund, most visitors arrive from Uzbekistan, followed by Kazakhstan and Russia. At the same time, the number of tourists from Arab and European countries, as well as from China, India, and the United States, has been steadily increasing.

world trade organization

Turkmenistan Steps Up Preparations for WTO Membership Amid Economic Growth

Turkmenistan is intensifying efforts to integrate into the global trading system, with officials reaffirming the country’s intention to move towards membership in the World Trade Organization (WTO). The announcement was made by Deputy Minister of Finance and Economy Perhat Yagshiyev during the forum “Investing in Turkmenistan’s Future,” according to local media reports. Yagshiyev said the accession process is progressing in a structured manner. A draft memorandum on the country’s foreign trade regime has been prepared, while WTO standards are being introduced gradually in cooperation with the organisation’s Secretariat and international partners. Authorities also point to positive macroeconomic trends. Official data indicate that Turkmenistan’s gross domestic product exceeded $77.4 billion in 2025, reflecting growth of 6.3%. Investment volumes reached more than $12.8 billion, up 6% year-on-year, while inflation reportedly declined to 3.2%. External debt remains below 3% of GDP, and officials say the country has not recorded domestic public debt since January 2022. Foreign trade turnover rose by 10.3% to $21.8 billion. The oil and gas sector, petrochemicals, energy, construction and agriculture continue to be highlighted by the government as priority areas for foreign investment. Transport infrastructure development remains a central component of economic policy. Turkmenistan is participating in several international logistics initiatives, including the Trans-Caspian corridor, the North-South transport route and the Lazurite corridor. The third phase of the Ashgabat-Turkmenabat highway is expected to be completed in 2026, which authorities say will strengthen the country’s role as a regional transit hub. Preparations for WTO accession are also linked to the modernisation of trade procedures. Galina Romanova, a representative of the Ministry of Finance and Economy, previously stated that improving trade facilitation is a key priority. “We are taking consistent steps to modernise customs procedures and introduce digital solutions that make trade faster and more transparent,” she said. Turkmenistan was granted observer status in the WTO on July 22, 2020, following a decision by the organisation’s General Council in Geneva.

Domestic trade

Kazakhstan’s Domestic Trade Growth Slows as Consumer Demand Weakens

The growth of domestic trade in Kazakhstan slowed markedly in early 2026, reinforcing signs of weakening consumer activity and increased business caution. According to the National Statistics Bureau, the trade sector expanded by only 3.4% in January–February, compared with 6% during the same period a year earlier. Growth slowed significantly, affecting both wholesale and retail trade. Analysts at Halyk Finance believe the trend reflects deeper economic processes rather than a short-term fluctuation. “The dynamics at the start of the year point to a cooling of aggregate demand and economic activity,” Halyk Finance said. Wholesale trade, a key indicator of business activity, showed the most pronounced slowdown. Growth fell to 3.8%, down from 6.6% a year earlier. In the first two months of the year, the volume of wholesale transactions reached $9.6 billion. However, the structure of trade indicates a predominance of non-food and industrial goods, reflecting weaker corporate demand. Experts also note that declining oil production has exerted additional pressure on the sector, directly affecting wholesale sales volumes. The situation in retail trade remains mixed. Overall growth stood at 2.6%, driven largely by large retail chains. Sales in organized retail increased by 3.7%, while turnover among individual entrepreneurs and traditional markets continued to decline, falling by 1%. This trend reflects ongoing structural changes in the sector. The market is gradually shifting in favor of large retail players, while small businesses face growing competitive pressure. Changes in consumer spending patterns are also evident. Sales of food products rose by 9.1%, whereas non-food sales increased by only 0.2%, despite accounting for the majority of retail turnover. This suggests that households are becoming more cautious, focusing spending on essential goods and postponing purchases of more expensive items. Another indicator of weakening demand is the rise in inventory levels. As of early March, inventories totaled approximately $2.5 billion, equivalent to around 77 days of sales. Combined with slower turnover, this points to a softening of consumer demand. Overall, analysts note that domestic trade continues to grow, but the pace of expansion is slowing and becoming less sustainable. Business activity remains subdued, consumers are saving more, and the market is gradually shifting toward more formal retail participants. The Times of Central Asia previously reported that the government is considering support measures for key sectors, including dairy and baking, in an effort to curb inflation and sustain demand.

TCA Interviews

Can Special Economic Zones Become a Driver of Economic Growth in Kazakhstan?

Kazakhstan currently has 17 special economic zones (SEZs) operating across 14 regions, three of which were created in 2025. How effective is this tool for attracting investment, reducing import dependence, and developing exports? And how will the SEZ model evolve within the framework of the Single Coordination Center? Yerlan Kusainov, Deputy Chairman of the Board of JSC Kazakhstan Center for Industry and Export “QazIndustry,” discussed these issues with The Times of Central Asia. TCA: Kazakhstan currently has 17 SEZs. How many companies operate in them, and what is the total volume of production? Kusainov: There are 1,144 participants registered in SEZ territories. Of these, 558 projects are already operational, while another 586 are in the implementation stage. Since the establishment of the zones, enterprises have produced goods worth 13.9 trillion tenge (about $28 billion). The current occupancy rate of the SEZs is 42.4%. This indicator is dynamic and may change as new contracts are signed or as some participants cease operations. TCA: What types of products are manufactured in the SEZs, and how does this contribute to reducing import dependence? Kusainov: The SEZs cover a wide range of industries, including manufacturing, construction, transport and logistics, and tourism. For example, the Aktau Seaport SEZ is implementing projects in the chemical industry, including the production of caustic soda and hydrochloric acid by Topan Chemical Industries. These products are widely used in metallurgy, the oil and gas industry, and water treatment. Previously, a significant portion of such products was imported, but production is now being localized in Kazakhstan. A major petrochemical cluster is being formed in the Jibek Joly SEZ. Projects there include the production of mineral fertilizers, chemical reagents, and polymer products. Participating companies include HIM-plus, KPM Plast, Chemical Engineering, and C9 Technologies. These projects are expected to supply the domestic market while also supporting exports. In the Pavlodar SEZ, projects are being implemented in metallurgy and petrochemicals. These include the production of calcined petroleum coke by UPNC-PV, car wheels by Vector Pavlodar, and aluminum ingots and alloys by LeichtMetall KZ and Unimetals. These products are exported to markets in Europe and Asia. The Ontustik SEZ focuses on the textile industry, where a full cotton-processing cycle has been established, from raw materials to finished products. Enterprises there produce cotton and synthetic yarn, carpets, and other textile goods. Another important site is the Park of Innovative Technologies SEZ, where projects in digital technologies and electronics are being developed. Key participants include the Institute of Physics and Technology, KT Cloud Lab, which is building a data center, and DS Multimedia CA, which manufactures electronic components. Together, these projects contribute to reducing import dependence and building export-oriented industries. TCA: What is the export volume of SEZ enterprises? Kusainov: The total export volume from SEZ enterprises has reached about $2 billion. In 2025 alone, exports amounted to approximately $490 million, compared with $148 million in 2021, an increase of 231%. TCA: How much investment has been attracted through the SEZs? Kusainov: Over the entire period of...

Economic Growth

Central Asia Accounts for 1.3% of Global Economic Growth

A recent study by Visual Capitalist, based on projections from the International Monetary Fund, maps who is powering global growth in 2026. The analysis highlights heavyweights like China, which accounts for 26.6% of global GDP growth, India at 17.0%, and the United States at 9.9%. Together, these three economies account for roughly 53–54% of global economic expansion, underscoring their scale and sustained growth momentum. Yet beneath those headline figures lies a quieter but strategically important development: Central Asia is steadily increasing its contribution to global economic growth. According to the study, Kazakhstan is set to contribute 0.7% of total global GDP growth in 2026, making it the clear regional anchor. Uzbekistan adds 0.4%. Turkmenistan will contribute 0.1%, while both Kyrgyzstan and Tajikistan will account for approximately 0.05% each. Taken together, this amounts to a 1.3% share of global GDP growth. While modest in absolute terms, the figure is notable given the region’s scale. With a population of over 80 million—comparable to Germany and Turkey—Central Asia’s aggregate contribution compares with these mid-sized advanced economies, which account for roughly 0.9% and 2.2% of global growth respectively. Moreover, with projected average annual growth exceeding 6%, Central Asian economies are expanding faster than much of Europe and other mature markets, reinforcing their rising relative contribution to global economic momentum.

Economic Growth

Central Asia Records Over 6% Growth as Trade with Russia Expands

Central Asian economies concluded 2025 with growth exceeding 6%, significantly outpacing major developed markets such as the United States and the Eurozone, where expansion stood at approximately 1.6% and 1.1%, respectively, according to Turkish newspaper Yeni Şafak. The figure aligns with the World Bank who puts regional expansion at 6.2% and the Eurasian who Development Bank (EDB) estimates growth at 6.6%. Economists attribute the region’s performance to strong domestic demand, active state investment programs, infrastructure development, and rising exports of raw materials and industrial goods. Kazakhstan and Uzbekistan accounted for the largest contributions to overall growth, supported by large-scale public investment initiatives and expanding foreign trade. By contrast, the U.S. and European economies experienced slower growth amid high interest rates, inflationary pressures, and weaker consumer demand. Uzbek economist Mirkomil Kholboyev, writing on his Telegram channel, said the trend reflects deeper structural factors. “In general, the average real growth in Central Asia has almost always been higher than in the United States or Europe, with the exception of 2021,” he wrote. “Beyond short-term effects, lower-income countries like ours tend to grow faster than high-income economies. In wealthier countries, the return on additional capital has declined, while in our region capital remains scarce, allowing investments to generate higher returns. Demographic growth is also higher here, and the steady expansion of the labor force serves as an additional driver of economic growth.” Trade data indicate that Central Asia’s economic ties with Russia have strengthened in recent years. In 2021, the region accounted for 3.2% of Russia’s imports. By the first 10 months of 2025, that share had risen to 4.6%. Over the same period, Central Asia’s share of Russian exports increased from 5.6% to 7%. Overall, during the first 10 months of 2025, Central Asia ranked as Russia’s third-largest import partner and fourth-largest export destination. Before the war in Ukraine, the region ranked seventh among Russia’s import partners and fourth in exports. Although Russia’s economy remains significantly larger, reaching approximately $2.1 trillion in 2024 and exceeding the combined size of Central Asian economies by about 4.4 times, the increase in trade shares over the past four years is notable. Kholboyev also noted that part of the rise in imports is attributable to re-export activity.