The Kyrgyz Republic's economy was severely affected by the collapse of the Soviet Union and the resulting loss of its vast market. In 1990, some 98% of Kyrgyz exports went to other parts of the Soviet Union. Thus, the nation's economic performance in the early 1990s was worse than any other former Soviet republic except war-torn Armenia, Azerbaijan, and Tajikistan. While economic performance has improved in the last few years, difficulties remain in securing adequate fiscal revenues and providing an adequate social safety net.

Agriculture is an important sector of the economy in the Kyrgyz Republic. By the early 1990s, the private agricultural sector provided between one-third and one-half of some harvests. In 2002 agriculture accounted for 35.6% of GDP and about half of employment. The Kyrgyz Republic's terrain is mountainous, which accommodates livestock raising, the largest agricultural activity. Main crops include wheat, sugar beets, cotton, tobacco, vegetables, and fruit. Wool, meat, and dairy products also are major commodities.

Agricultural processing is a key component of the industrial economy, as well as one of the most attractive sectors for foreign investment. The Kyrgyz Republic is rich in mineral resources but has negligible petroleum and natural gas reserves; it imports petroleum and gas. Among its mineral reserves are substantial deposits of coal, gold, uranium, antimony, and other rare-earth metals. Metallurgy is an important industry, and the government hopes to attract foreign investment in this field. The government has actively encouraged foreign involvement in extracting and processing gold. The Kyrgyz Republic's plentiful water resources and mountainous terrain enable it to produce and export large quantities of hydroelectric energy.

The Kyrgyz Republic's principal exports are nonferrous metals and minerals, woolen goods and other agricultural products, electric energy, and certain engineering goods. Its imports include petroleum and natural gas, ferrous metals, chemicals, most machinery, wood and paper products, some foods, and some construction materials. Its leading trade partners include Germany, Russia, China, and neighboring Kazakhstan and Uzbekistan.

The Kyrgyz Republic exports antimony, mercury, rare-earth metals, and chemical products to the United States. It imports grain, medicine and medical equipment, vegetable oil, paper products, rice, machinery, agricultural equipment, and meat from the United States. According to the National Statistics Committee, in 2002 Kyrgyz exports to the U.S. totaled $36.1 million; for January through September of 2003, Kyrgyz exports to the U.S. totaled $5.5 million. In 2002 Kyrgyz imports from the U.S. totaled $47.4 million, much of which was equipment, food products, and commodities provided by assistance programs; for January through September of 2003, Kyrgyz imports from the U.S. totaled $25.7 million.