Economy at a Glance
Since independence, Uzbekistan has started a gradual transition to a market-based economy. The process of economic reforms was based on a gradual approach, in order to ensure social stability alongside with substantial economic growth. This approach resulted in considerable achievements, recognized by all major international financial institutions.
For instance, the volume of economy for the last six years has grown by 45 percent, industrial production – 1.6 times, agricultural production – 1.5 times, the foreign trade turnover – 1.7 times, gold and currency reserves – 3.7 times, growth rate of GDP for last four years is kept at a level of 7-8 percent, and inflation rate for the last six years has reduced from 26% to 2,9%.
Uzbekistan is a leading industrial country in Central Asia. It possesses a highly developed automobile, airplane and machine building, textiles, food processing, metallurgy, natural gas and oil processing, chemical and other industries.
Uzbekistan is a largest agricultural producer of the region. It is leading producer and exporter of raw cotton, and, more recently, of cotton yarn and textiles. The country also produces and exports significant quantities of silk, fruits and vegetables.
Mining and minerals is a crucial part of the national economy. Uzbekistan is a major producer of gold with the largest open-pit gold mine in the world and has substantial deposits of such strategic minerals as copper, lead, zinc, tungsten, and uranium, as well as natural gas and oil.
The country has a highly developed transport infrastructure, of 6,5 thousands km of railways, over 43,5 thousands km of highways and developed air communication network which connects the most remote regions and uninhabited areas of the country to major centers, providing access to international transport systems and basic natural mineral and raw materials resources in the country.
Uzbekistan's foreign trade policy is based on import substitution. The country’s traditional trade partners are the CIS countries, notably Russia, Ukraine and Kazakhstan, which in aggregate account for over 40% of its exports and imports. Non-CIS partners have been increasing in importance in recent years, with Turkey, China, Iran, South Korea, and the EU being the most active.
Uzbekistan is a member of the IMF, World Bank, Asian Development Bank, and European Bank for Reconstruction and Development. It has observer status at the World Trade Organization, is a member of the World Intellectual Property Organization, and is a signatory to the Convention on Settlement of Investment Disputes Between States and Nationals of Other States, the Paris Convention for the Protection of Industrial Property, the Madrid Agreement on Trademarks Protection, and the Patent Cooperation Treaty.
Dynamic of the main macroeconomics indicators of the Republic of Uzbekistan
(in % to the previous year)
(incomes, expenses, deficit, in % to GDP)
Export structure of the Republic of Uzbekistan
Import structure of the Republic of Uzbekistan
Trade turnover with leading economic partners of the Republic of Uzbekistan
More than 20 billions US dollars of foreign investments have been attracted into the economy of the Republic of Uzbekistan, including 5 billions during the last 3 years.
The volume of direct foreign investments into the Uzbek economy has increased by 25,4% and made up more than 1,2 billions dollars in 2006.
1. Ministry of economy (www.minecnomy.uz)
2. Ministry of foreign economic relations, investments and trade (www.mfer.uz)
3. “Uzinfoinvest” Agency (www.uzinfoinvest.uz)
5. Chamber of Commerce (www.chamber.uz)
Thee outcomes of social and economic development of Uzbekistan during 9 months of 2008
As a result of realization by the government and bodies of state power at the local levels of policy measures on implementing the most important priorities of social-economic development of the country defined by President for 2008, accomplishment of purposeful policy programs of development, technical and technological renewal of strategic sectors of economy in January-September 2008, the sustainable dynamics of growth of main indicators of social and economic development of Uzbekistan has been ensured.
Maintaining macroeconomic stability, sustainable and balanced rates of economic growth. On the outcomes of 9 months the GDP growth accounted for 9.4%. The growth in industrial production made up 12.4%, including 18.4% growth in consumer goods production, 8.4% - in construction works, 4.1% - in agriculture, 15% - in retail trade, 19.3% - in paid services to population. The state budget has been executed with 1.9% surplus. Real money income per capita grew by 22.4%.
The main factors of economic growth have been as follows: dynamic export activity which led to a 40.9% growth of foreign trade, including 62.9% of exports, positive balance of payments totaled USD 4.5 billion, investment policy which ensured the continuation of structural changes in real sector of economy and the growth in assimilated investments by 22.4%; support of small businesses and entrepreneurship which developed thanks to reduction of tax and administrative burden on business.
Continuation of structural changes, modernization and renewal of leading sectors of economy. Implementation of Investment Program during 9 months this year became an important factor of accomplishing structural changes, modernization and renewal of leading sectors of economy. For over the past period the volumes of assimilated capital investment with consideration of all sources of financing have totaled UZS 5809.8 billion and grew by 22.4% compared to the same period of 2007.
The volume of assimilated foreign investments (FI) has accounted for USD 969.6 million, including direct foreign investments (DFI) which made up USD 721.66 million. Their growth was 37.4% and 33.5%, respectively. The share of DFI and loans in the total volume of FI was 74.4%. Of the total volume of attracted FI 31.6% has been channeled to a capital construction, 39.8% went to modernization and reconstruction and 28.6% has been channeled for other purposes.
In general, 284 production facilities have been commissioned across the country in 9 months this year. Of them, 134 production facilities (or 47.2%) have been commissioned in 69 subsidized territories of the country. Non-production construction and reconstruction of social facilities received 28.9% of total amount of capital investment which provided for the construction of 14 professional colleges, 22 academic lyceums, construction, reconstruction and capital overhaul of 634 schools, 184 facilities of children's sport, 20 rural medical stations, 6083.4 thousand square meters of housing, and others.
As a part of measures on developing production infrastructure that ensure creation of favorable conditions for developing the new productions, Uzbekistan took the steps aimed at road construction and reconstruction, development of power supply lines and electrification of railroads, water and gas supply systems.
During implementation of the localization Program the localizable goods worth UZS 2187.9 billion were produced that is 1.3 times more in comparison with the same period of 2007. Products worth UZS 726.7 million were exported. For over the past period 45 new companies were commissioned on the basis of unused capacities of restructured enterprises. 106 from abovesaid companies have already launched a production activity and employed over 6.7 thousand people. Growth rate of production of commodity output made up 112.4% in the industry.
The growth of exports in the foreign economic activity was ensured mainly by way of chemical production (163.6%), machines and equipments (113.1%), services (126.1%) and other goods and services.
Deepening reforms and further liberalizing economy, accelerated development of market infrastructure. For over the 9 months of 2008 on the basis of zero redemption value investors assimilated 46 facilities by way of taking up investment obligations. At this period 327 state companies and facilities were turned into the non-state ones 98.5% of which were purchased by private owners. Total turnover of securities market rose to 2.3 times compare to the same period last year and the cumulative turnover of secondary securities market grew by 79%.
For over the past period Uzbekistan continued the work on developing market infrastructure in the framework of implementation Finance and banking system reform program. Also, the country took measures to stimulate activity of insurance, audit, leasing and appraisal companies, credit unions and commercial banks.
Support and stimulating development of small business and private entrepreneurship, spheres of services and home-based labor. As a result of measures undertaken to support small business and private entrepreneurship the number of registered companies of small businesses rose by 3.3% compare to early this year and made up 436.3 thousand. From early this year the number of existing companies of small businesses in the industry grew by 2.5%, in construction – by 4.6%, trade and public catering – by 4.4%, in the sphere of transport and communication – by 17.2%, and in other production sectors – by 7.2%. The share of small businesses in GDP rose from 43.1% in the same period of 2007 up to 45.3%. The volume of rendered services as a whole on economy rose by 18.5%, the net share of this sphere in GDP – up to 44.9% against 40.5% for the same period last year. The share of services rendered to rural population rose from 23.7% up to 26.5%.
For over the 9 months of 2008 about 545.2 thousand new jobs were created, particularly in the sphere of small businesses and private entrepreneurship – 303.4 thousand jobs, or 56% of their total number. Over 188.2 thousand new jobs were created in the sphere of services. As a result of work on extending cooperation between companies and services production based on development of home-based labor 85.1 thousand jobs were created. Totally, 182.5 thousand people additionally were covered by home-based labor.
Results of reforms in agriculture, ensuring sustainable food supply of population. For over the past 9 months of this year the growth of agricultural gross product made up 4.1% against the same period of 2007.
Compare to last year Uzbekistan produced more melons and gourds (118.5%), potatoes (108.6%), vegetables (111.5%), fruits (114.2%), meat (106%), milk (106.2%), and eggs (108.5%). For over the past period the country stimulated increase of cattle at private subsidiary and dekhkan (peasants) entities. The networks of services and strengthening of forage reserves of stockbreeding were established.
By October 1 this year the commercial banks and Employment Assistance Fund of the Ministry for labor and social protection of citizens allotted UZS 34 billion-worth loans to 26.7 thousand families. During past period Uzbekistan ensured sustainable food supplies of population.
Increasing citizens’ well-being. The real cash income of citizens rose by 24.4% compare to the same period of 2007. The average salary along Uzbekistan by late this year made up UZS 298.6 thousand that is 57.4% higher than the same period of 2007. The average rate of pensions rose by 71.7%. Thanks to implementation of programs effective in the education system 491.400 secondary school ninth grader graduates continued their education at academic lyceums and professional colleges.
In the healthcare system the network of initial healthcare is being expanded by way of establishing new rural medical stations. 821 summer health-recovery camps for children were established where 252034 children have recovered, including 50% of children from large and less well-off families. 4517 children from the area adjacent to Aral, as well as 2108 from the city of Kagan went to health recreation camps in Samarkand and Kashkadarya provinces.
During past nine months UZS 1103.2 billion were channeled for accomplishment of measures on implementing the Year of Youth State Program. Above 240.000 graduates of professional colleges and academic lyceums have been employed. Besides, over 81.200 youth, including 12.300 people those who were separated from military service and 20.200 disabled have been provided with jobs. With an aim to financially support youth the Employment Assistance Fund allotted in total UZS 2045 million-worth micro-credits for 1.500 young people. UZS 45.9 billion-worth loans were allotted for newly married couples to better their living conditions. 1200 young families of teachers received land plots to build individual houses at rural areas.
Given exacerbating world financial and economic crisis preserving of high rates of economic growth has been ensured mainly thanks to implementation of the most important priorities of the program for social and economic development of Uzbekistan defined by President Islam Karimov. Further accomplishing the measures on intensifying market reforms of economy, enhancing involvement of commercial banks in investment processes and creating new jobs promotes a firm basis for overcoming the possible negative impact of the world crisis on the economy of Uzbekistan, preserving secured rates of economic growth of the country and further raising well being of its citizens.
Information Agency “Jahon” based on materials of local press