The Republic of Uzbekistan
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Capital |
Tashkent |
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Population |
36.2 million (2024) |
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Area |
447.4 thousand sq. km |
|
Languages |
Uzbek |
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Government |
President of the Republic of Uzbekistan - H.E. Mr. Shavkat Mirziyoev Miromonovich Prime Minister of the Republic of Uzbekistan - H.E. Aripov Abdulla Nigmatovich Minister of foreign affairs of the Republic of Uzbekistan - H.E. Saidov Baxtiyor Odilovich |
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National Day |
1st of September - Independence Day of the Republic of Uzbekistan |
Uzbekistan, officially the Republic of Uzbekistan (Uzbek: Oʻzbekiston Respublikasi), is one of the double landlocked countries in the world and located in a region called Central Asia. It is surrounded by five landlocked countries: Kazakhstan to the north; Kyrgyzstan to the northeast; Tajikistan to the southeast; Afghanistan to the south and Turkmenistan to the south-west. It comprises 12 provinces (vilayats) and one autonomous republic, Karakalpakstan. The capital and largest city of Uzbekistan is Tashkent. It is the 56th largest country in the world by area and the 42nd by population.
Uzbekistan has achieved significant economic progress during the presidency of Shavkat Mirziyoyev. In particular, foreign direct investments reached $25 billion last year, with about 59 thousand investment projects implemented over the last six years and more than 2.5 million new jobs created. The country set ambitious goals for economic transformation, called Uzbekistan Strategy 2030. By 2030 or earlier, Uzbekistan wants to join the World Trade Organization, and become a country with a GDP per capita in the upper middle-income level.
Basic Statistics:
GDP : 90.9 billion USD (2023)
GDP per capita : 2,510.1 USD (2023)
Export value : 24.4 billion USD (2023)
Import value : 38.1 billion USD (2023)
Number of tourists : 7 million (2023)
Foreign direct investments : $22.4 billion USD (2023)
Number of companies with foreign capital : 13.8 thousand (February, 2022)
Inflation rate : 8.77 % (March, 2023)
Main export items : Gold, fertilizers, ferrous and nonferrous
metals, textiles, food stuffs
Main export destinations : Switzerland (25.4%), Russia (15.4%),
China (11.7%), Turkey ($9.3%), and Kazakhstan (7.4%)
Main import goods : Machinery and equipment, food stuffs,
chemicals, pharmaceuticals
Main import sources : China (24.3%), Russia (18.8%),
Kazakhstan (12.3%), South Korea (7.5%), and Turkey (6.3%)
Export Details: Comparative figures between 2023 Vs 2022
In 2023, Uzbekistan’s foreign trade turnover surged to $62.57 billion, marking a substantial 23.8% increase of $12 billion compared to the previous year, according to data from the Statistics Agency of Uzbekistan. Over the span of 12 months in 2023, gold sales soared to a record $8.15 billion — almost double the figures from 2022. Gold shipments accounted for a 33.4% share in the country’s total exports, while it was 21.3% in the previous year. Excluding gold, overall exports experienced a growth of 4.5%, reaching $16.17 billion. In 2023, the sales of fruits and vegetables witnessed a 1.1% increase, totaling 1.76 million tons, and a 3.3% growth in value, reaching $1.18 billion. The primary markets for fruit and vegetable exports included Russia (37%), Pakistan (16.7%), the People’s Republic of China (12.3%) and Kazakhstan (10.3%). Exports of oil and oil products doubled, reaching $333 million, inorganic chemicals rose to $497.5 million (+22.6%), iron and steel to $185.9 million (+11.3%), metal products to $130.2 million (+11.9%) and leather goods to $41.3 million (+17%).
United States Department of Agriculture 2023 (USDA) report shows that Uzbekistan's cotton sector is undergoing notable changes in production, consumption, and industry practices. For the marketing year 2023/24, cotton production is estimated at 621,000 metric tons, while consumption is forecasted to be slightly lower at 599,000 metric tons. The reduction in cotton consumption is attributed to decreased demand for cotton yarn and fabric from importing countries like Turkey and Russia, aligning with a global decline in ready-to-wear apparel demand. Conversely, Uzbekistan has witnessed a considerable surge in cotton yarn and fabric exports, showcasing the country's ambition to ascend the value chain and become a major producer and exporter of finished textile products. This is to note that the government has imposed a ban on exporting raw cotton and encouraged the stakeholders to process it (once called white gold) domestically.
Import Details: Comparative figures between 2023 Vs 2022
In terms of imports, food supplies remain at a high level, with grains and related products amounting to $1.12 billion (+5.3%), coffee, tea, cocoa and spices to $385.3 million (+23%), vegetable oils and fats to $354.9 million (+16.4%), meat and meat products to $348.4 million (+9.1%), vegetables and fruits to $348.4 million (+23.5%) and dairy products and eggs to $211.5 million (+31.7%). Oil and oil product imports increased to $1.61 billion (+27%), while coal, and briquette to $204.4 million (+67.8%). Gas supplies experienced a 2.5-fold increase, reaching $694.9 million. Imports of automobiles rose to $4.34 billion (1.7 times) and spare parts increased to $148.3 million (+68.8%). Fertilizer imports experienced a twofold increase, reaching $167.2 million. This notable surge in supplies is possibly related to the production decline at Uzkimyosanoat (Uzbekistan chemicals) enterprises, which faced gas shortages. In response to the losses, Uzbekistan imported 55.3 thousand tons of ammonia from Russia to manufacture 64.2 thousand tons of ammonium nitrate, constituting 8% of the country’s total output. Although there was a 2% decline in the import values of medical and pharmaceutical products, the country spent a substantial amount in importing medicines from other countries.
Furthermore, Uzbekistan imported iron and steel totaling $2.55 billion (+1.7%), metal products — $940.1 million (+28.4%), textile yarn, fabrics and finished goods — $675.4 million (+24.1%), rubber products valued at $543.5 million (1.5 times) and paper and cardboard worth $479.6 million (+6.7%), among other imports.
Trade Agreements
Uzbekistan has reportedly signed trade agreements with 47 countries, securing most favored nation treatment. As per reports, it has also signed bilateral investment treaties with 52 countries. In 2004, Uzbekistan and Russia signed a Strategic Framework Agreement that also included free trade and investment concessions. In November 2005, the government signed the “Treaty of Alliance Relations” with Russia, with provisions for economic cooperation. Uzbekistan’s membership in the CIS Free Trade Zone was formalized in 2014. Uzbekistan currently has free trade agreements with eleven countries - all of them are former members of the Soviet Union. In 2004, Uzbekistan signed the regional Trade Investment Framework Agreement (TIFA) with the US Trade Representative’s Office and four of its Central Asian neighbors – Tajikistan, Turkmenistan, Kazakhstan, and the Kyrgyz Republic. The country became an observer in the Eurasian Economic Union (EAEU) in 2020. Uzbekistan is not a member of the World Trade Organization (WTO) but is actively working on accession. On April 9, 2021, the European Union accepted Uzbekistan as the beneficiary of its expanded General System of Preferences (GSP+) trade arrangement, which removes tariffs on two thirds (6,200) of the product lines covered by GSP. On July 6, 2022, the European Union and Uzbekistan completed negotiations for a new Enhanced Partnership and Cooperation Agreement. On November 1, 2021, Uzbekistan became the first country admitted to the United Kingdom’s Enhanced Framework Generalized Scheme of Preferences, which allows zero import duty on more than 7,800 products made in Uzbekistan.
Uzbekistan-2030 Strategy: Highlights
The roadmap for development, widely known as Strategy -2030, was adopted by the government in 2023, with featuring the following major goals and targets:
− increase the volume of gross domestic product to 160 billion dollars and per capita income to 4 thousand dollars;
− increase the production of copper necessary for high-income products by 3.5 times, gold - 1.5 times, silver - 3 times, uranium - 3 times;
− creating a competitive environment in the automotive industry and increasing the production volume to 1 million units;
− 70% coverage of the need for drugs in the pharmaceutical sector at the expense of domestic producers;
− increasing the added value by 5 times due to attracting more than 30 prestigious foreign brands to the leather-shoe industry;
− 250 billion dollars of investments, including 110 billion dollars of foreign investments and 30 billion dollars of public-private partnerships;
− privatization of banks and keeping 3-4 banks under state ownership, attracting at least 4 foreign banks to the banking market;
− introduction of criteria and procedures of Islamic finance in at least 3 commercial banks, formation of legal basis of Islamic finance;
− increase renewable energy sources to 25,000 MW and their share in total consumption to 40%;
− transition of public transport in cities to eco-friendly fuel;
− increase the amount of electricity supplied for economic sectors and population to 120 billion kWh;
− increase the volume of natural gas production to 62 billion cubic meters;
− increase the number of flights by 4 times;
− doubling the volume of exports to 45 billion dollars;
− increase the number of foreign tourists to 15 million, the number of domestic tourists to 25 million, and the number of tourists coming for pilgrimage tourism to 3 million;