After the country gained independence, the government of Uzbekistan took a course towards the gradual transformation of a command economy into a market economy. Progress was slow, but significant achievements of such a policy became visible over time. Uzbekistan's GDP grew by as much as 7% in 2014, despite the barely ending world economic crisis. However, the country has yet to close the gap between the official exchange rate of its currency and the black market.
Now the state needs significant structural reforms, in particular, in the field of improving the investment climate, strengthening the banking system, and eliminating the regulation of the agricultural sector. So far, government intervention continues to have a negative impact on the economy. The joint work of the government of Uzbekistan and the IMF has significantly reduced inflation and budget deficits, which significantly reduced the number of people below the poverty line.
general information
New presidential elections in the country will be held on December 4, 2016 in connection with the death of Islam Karimov. Until this time, official duties will be performed by Prime Minister Shavkat Mirzyaev. Presidential elections should increase political stability in the country. Over the past decade, the economy of Uzbekistan has developed rapidly. However, today it needs new growth engines.
The increase in consumption in recent years was due to an increase in the export of gas, gold and coal. However, the production of these natural resources cannot be raised indefinitely, moreover, world prices for them have significantly decreased. Therefore, the country needs a reform that will ensure the stable development of the economy. It is expected that the GDP growth of Uzbekistan in 2016 will slow down, due to both the above reasons and the problems of leading trading partners, in particular, the Russian Federation.
Main characteristics
Judging by the latest available data (as of 2014), the country has the following indicators:
- Uzbekistan's GDP is 63.13 billion US dollars.
- Gross domestic product growth - 7%.
- Uzbekistan's GDP per capita is $ 1, 749.47.
- GDP by sector: agriculture - 18.5%, industry - 32%, services - 49.5%.
- External debt - 8.571 billion US dollars.
Economic review
Uzbekistan is one of the leading producers and exporters of cotton, although the importance of this product has diminished since the country gained independence. The state also has the largest gold mine in the world. Uzbekistan is rich in natural resources: there are significant reserves of coal, strategic minerals, gas and oil. The main industries are textile, food, engineering, metallurgy, mining and chemical.
Uzbekistan GDP dynamics
The gross domestic product of the country in 2015 amounted to 66.73 billion dollars. USA. This is only 0.11% of global GDP. Over the past ten years, this indicator has shown steady growth. If we consider the GDP of Uzbekistan by years, then on average it amounted to 24.39 billion dollars. USA for the period from 1990 to 2015. The maximum was reached last year. The minimum value of Uzbekistan’s GDP for this period was recorded in 2002 - $ 9.69 billion. USA.
In the first half of 2016, the indicator grew by 7.8%. This is 0.2% less than the same period last year. All sectors of the economy developed at a slower pace than in 2015. Industrial growth this year was 7.2%, services - 12.4%, construction - 15%, agriculture - 6.4%, retail - 14.2%. Thus, it is clear that the pace of economic development is starting to slow down, which poses an even more acute problem of structural reforms. On average, over the past ten years, GDP for the year grew by 8.03%. The maximum was reached in 2007 - by 9.8%. Minimum growth was recorded in 2006 - only 3.6%.
Despite the fact that the economy of Uzbekistan is quite closed, it managed to ensure a constant increase in GDP due to the reserves of natural resources available in the territory, in particular, oil, gas and gold. The cash proceeds from their production and marketing help the authorities control the national economy through investments in services and industry. Today, Uzbekistan is the fifth largest producer of cotton. However, the state seeks to diversify its agriculture towards fruits and vegetables.
Uzbekistan: GDP per capita
Last year was a record for many indicators. In 2015, the maximum GDP of Uzbekistan per capita was recorded. He amounted to 1856.72 dollars. USA. This is 15% of the global average. The minimum value of GDP per capita was recorded in 1996 - 726.58 dollars. USA.
National strategy
The continuation of the recession in Russia, a decrease in the growth of China's gross domestic product and a fall in the prices of gas, coal and cotton, which are the main export commodities, have caused a slowdown in the development of the national economy. In order to ensure the growth of Uzbekistan’s GDP, the authorities used additional fiscal measures, in particular, increased government spending and reduced the level of taxation.
In April 2015, a privatization program was announced. In the first half of 2016, about 305 enterprises were sold to citizens of Uzbekistan. Foreign investors received only insignificant shares in 30 companies. The main problems of the economy of Uzbekistan remain weak diversification of foreign trade and the slow implementation of market mechanisms.
International trade
The volume of exports in 2014 amounted to 13.32 billion US dollars. The main partners of Uzbekistan were the following countries: Switzerland, China, Kazakhstan, Turkey, Russia, Bangladesh. Fuel, cotton, gold, mineral fertilizers, ferrous and non-ferrous metal ores, food products, equipment and automobiles were exported.
The volume of imports in 2014 amounted to 12.5 billion US dollars. The main partners of Uzbekistan were countries such as China, Russia, the Republic of Korea, Kazakhstan, Turkey, Germany. Among imported goods, the largest share belongs to machinery and equipment, food products, chemicals, ores of ferrous and non-ferrous metals.
Preliminary statistics show that exports increased in the first half of 2016. The volume of transfers and imports, in contrast, decreased. This is due to lower consumption by the private sector of durable goods and non-food products. The import-substitution program for fuels and chemicals also contributed.
