Kyrgyzstan’s high economic growth rates have yet to be matched by a comparable increase in economic efficiency. From 2021 to 2025, the country’s economy grew by an average of about 10 percent a year, while average labor productivity growth stood at 5.7 percent.
Azamat Akeneev, an expert at the National Institute for Strategic Initiatives under the President of Kyrgyzstan, said this at the scientific and practical conference «Entrepreneurial Potential of Kyrgyzstan: Government Support and Growth Opportunities.»
According to him, the gap between economic growth and productivity growth indicates a development model that is primarily extensive in nature. Growth is driven mainly by increases in investment, employment, and domestic demand, whereas the efficiency of resource use is improving more slowly.
«Long-term sustainable income growth begins only when the same worker is able to create more added value. Productivity should become the next
Data from the World Bank was also presented at the conference, showing that in 2025, labor productivity in Kyrgyzstan was the lowest among Central Asian and CIS countries.
Experts cite the structure of employment and the large share of the informal sector among the reasons. More than 60 percent of the workforce is employed in low-productivity sectors, while only about 15 percent work in industries with productivity levels significantly above the average.
At the same time, about 75 percent of workers at their primary place of employment are in the informal sector.
The National Institute for Strategic Initiatives noted that this creates a labor market paradox: businesses face a shortage of skilled specialists, while the economy lacks a sufficient number of highly productive jobs.
According to experts, the situation increases incentives for labor migration and makes it more difficult to retain human capital within the country.
