Uzbekistan
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Economic and political outline
Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline
Economic indicators
Structural reforms are long in coming, especially in the creation of a healthy environment for foreign investments and the liberalization of the agricultural sector from State control.
Uzbekistan's GDP growth remained strong (+9%) in 2008, and settled at 8.2% during the first quarter of 2009. The country was only partially affected by the international financial crisis. These results are to be attributed to the growing industrial services sectors, as well as to an anti-crisis plan aimed at commercial banks. As for agriculture, it showed strong growth in the first quarter of 2009.
However, Uzbekistan is facing a high inflation rate (7.8% in 2008). The unemployment rate is high, even though the official rate is very low. Due to the 2008-2009 financial crisis, Uzbek workers who had emigrated to Russia and neighboring countries (numbers is estimated at 3 to 5 million), returned to their country. This return will result in the reduction of the financial influx which was made up of money the workers sent to their families.
High corruption within the government and an extremely restrictive trade regime are factors that slow down the economy.
| Main indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| GDP (billions USD) | 17.03 | 22.31 | 27.92e | 31.04e | 35.18e |
| GDP (constant prices, annual % change) | 7.3 | 9.5 | 9.0e | 7.0 | 7.0e |
| GDP per capita (USD) | 643 | 830 | 1,027 | 1,119e | 1,253e |
| Inflation rate (%) | 14.2 | 12.3 | 12.7 | 12.5 | 9.5e |
| Current Account (billions USD) | 1.55 | 1.63 | 3.79e | 2.40 | 2.39 |
| Current Account (in % of GDP) | 9.1 | 7.3 | 13.6e | 7.7e | 6.8 |
Source: IMF - World Economic Outlook Database
Note: (e) Estimated data
Main sectors of industry
Agriculture is the main pillar of the economy and contributes nearly 25% to the GDP. It showed a growth of 4.6% during the first quarter of 2009. Cotton remains the main source of Uzbekistan's foreign exchange but exports fell by 7.8% during the first quarter of 2009. The other main crops are fruits and vegetables, and livestock. Cotton, silk, and wool provide the basis for Uzbekistan's textile industry. Traditional crafts such as silk dying and carpet weaving, put on hold during Soviet rule, have been revived since independence.
Additionally, the country has abundant natural resources; it is the 9th biggest gold producer in the world. Other major mineral ores available are coal, zinc, copper and tungsten. The country is also a big gas and oil producer. The industrial sector contributes nearly a third of the GDP. Machine building, metallurgy, food-processing, the manufacture of chemical products, fertilizers and building materials are the most important industries. Along with gold and cotton, gas remains one of the country's most important sources of foreign exchange.
| Breakdown of economic activity by sector | Agriculture | Industry | Services |
| Employment by sector (in % of total employment) | - | - | - |
| Value added (in % of GDP) | 23.3 | 31.1 | 45.6 |
| Value added (annual % change) | 6.1 | 4.5 | 15.8 |
- last available data.
Indicator of economic freedom
- Score:
- 50.5/100
- Position:
- mostly unfree
- World Rank:
- 148 out of 179
- Regional Rank:
- 34 out of 42
Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation
Country risk
See the country risk analysis provided by Ducroire.
Foreign trade in figures
The over-regulated trade policy, aimed at maintaining hard currency reserves, leaves little room for imports. To a large extent, Uzbekistan's foreign trade revenues depend on the international prices of gold and cotton. Therefore, the country is profiting from the record gold prices, which have been climbing since 2006. However, the drop in global demand at the end of 2008 and beginning of 2009 have affected exports. Cotton remains the main source of foreign exchange for Uzbekistan though its cultivation was very strongly affected by the drought.
Gas sales almost tripled in 2007 due to the doubling of prices, and also to the increase, by 33%, of the sale volumes. The increase in imports is attributed to a very strict control policy, as well as very high tariff barriers. However, this should not hide the very real significant smuggling border trade. The country essentially imports machinery and equipment, chemical products, food products and ferrous and non-ferrous metals.
Trade with Russia, the most important trade partner after the Union European, represents more than one-fourth of the total Uzbek business volume, against 50% with the EU. Uzbekistan sells cars, cotton and almost 90% of its agricultural production to Russia. Russia in turn supplies manufactured products (equipment goods and arms). A drop in trade with Russia was noted in 2008. The Commonwealth of Independent States contribute approximately a third of the foreign trade.
| Foreign trade indicators | 2003 | 2004 | 2005 | 2006 | 2007 |
| Imports of goods and services (annual % change) | 1.3 | 18.7 | 4.4 | 12.0 | 36.8 |
| Exports of goods and services (annual % change) | 8.0 | 21.0 | 5.2 | -2.6 | 32.4 |
| Imports of goods and services (in % of GDP) | 30.6 | 32.7 | 28.7 | 27.4 | 30.2 |
| Exports of goods and services (in % of GDP) | 37.3 | 40.2 | 37.9 | 37.5 | 40.3 |
| Foreign trade (in % of GDP) | 67.8 | 72.9 | 66.5 | 64.9 | 70.5 |
Source: World Bank
- See more products
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More imports (Intracen Data)
More exports (Intracen Data)
Sources of general economic information
- Ministries
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Ministry of Economy
Ministry of Finance
Ministry of Foreign Economic Relations, Investments and Trade
- Statistical Office
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State Committee of Statistics
- Central Bank
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Central Bank of Uzbekistan
- Stock Exchange
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Tachkent Stock Exchange (in Uzbek)
- Search Engines
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Uzbekworld.com
Uzonline
- Economic portals
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Economic portal
Political outline
- Executive Power
- The President is both the chief of the state as well as the head of the government. He is elected by popular vote for a seven-year term. The President is the commander-in-chief of the armed forces and holds almost all the executive powers. He selects and replaces provincial governors. The Prime Minister and cabinet ministers are also directly appointed by the President with confirmation by the parliament.
- Legislative Power
- The legislature is bicameral in Uzbekistan. The parliament called Supreme Assembly consists of: the Senate (the upper house) having 100 seats with 84 members elected by regional governing councils to serve five-year terms and 16 are appointed by the President; and the Legislative Chamber (the lower house) having 120 seats with its members elected by popular vote to serve five-year terms. The President and the executive branch completely dominate the legislature and can dissolve it if they wish so. The Parliament meets only a few days every year and has little power to shape laws. The people of Uzbekistan have very limited political rights.
- Main political parties
-
The government severely suppresses all political opposition. The five political parties represented in the Parliament, all supporters of President Islam Karimov, are:
- LDPU (Uzbekistan Liberal Democratic Party ) – advocates liberal and democratic economic values (41 seats)
- NDP (Uzbekistan People's Democratic Party) - former Communist Party, still broadly advocates communist ideology (33 seats)
- Fidokorlar (Self-Sacrifice National Democratic Party) - advocates building an open society based on market-economy while at the same time supporting national interests; targets youth as its support base (18 seats)
- Uzbekistan National Revival Democratic Party - advocates mainly revival of Uzbek culture, promoting solidarity with the rest of Central Asia (11 seats)
- Adolat (Justice) - (7 seats) - Current political leaders
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President: Islam KARIMOV (since 1991, re-elected in 2000 and 2007)
Prime Minister: Shavkat MIRZIYOYEV (since December 2003) – non-partisan
First Deputy Prime Minister Rustam AZIMOV (since 2 January 2008)
President of the Lower house of the Parliament, leads the Adolat (Justice) party: Diloram TACHMOUHAMEDOVA
Vice-President of the Lower house of the Parliament, leads the People's Democratic party: Aslidin ROUSTAM
President of the National Center for Human Rights: Akmal SAIDOV
Birlik party, not officially recognized: Abdourahim POLAT
Erk party, not officially recognized: Mohammed SOLIH
Leader of the opposition party "My Radiant Uzbekistan": Sanyar OUMAROV - Next election dates
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Presidential Elections: December 2009
Parliamentary elections: December 2009
Indicator of freedom of the press
- World Rank:
- 162/173
- Evolution:
- 2 places down compared to 2007
Source: Worldwide Press Freedom Index 2007, Reporters Without Borders
Indicator of political freedom
- Ranking:
- Not Free
- Political freedom:
- 7/7
- Civil liberties:
- 7/7
Map of freedom 2007
Source: Freedom House
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Last updates: November 2009