Capital City: Tashkent
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Economic trends

Since its independence from Soviet Union, the economy of Uzbekistan has been gradually moving to a free-market economy. But substantial structural reforms still need to be executed, particularly in the area of creating healthy environment for foreign investments and freeing the agricultural sector from state control. The country’s GDP growth was 7.3% in 2006 and 8.8% in 2007. It is forecasted to touched 7.5% in 2008. An extremely restrictive trade regime is slowing down the economy. Uzbekistan faces a high degree of inflation (estimated at 12.2% in 2007) and unemployment (no reliable statistics available). Low level of transparency coupled with high corruption exits in the government sector.

Main branches of industry

Agriculture is the main pillar of the economy and contributes nearly 28% to the GDP. It employs roughly 35% of the active population. Uzbekistan is the 2nd largest cotton exporter in the world. The other main crops are cereals, fruits and vegetables. The country has abundant natural resources. It is the 10th largest gold producer in the world. Other major minerals present are: coal, zinc, copper and tungsten. The country is an important gas and oil producer too. The industrial sector contributes nearly 29% to the GDP. Cotton, silk, and wool provide the basis for Uzbekistan's extensive textile industry. Traditional crafts such as silk dying and carpet weaving, discouraged under Soviet rule, have revived after independence. Machine building, metallurgy, food-processing, and the manufacture of chemicals, fertilizer, and building material are leading industries. Uzbekistan has more than 20 hydroelectric power plants.

International trade

Uzbekistan has adopted a policy of import substitution. The share of foreign trade in country’s GDP is nearly 70%. The over-regulated trade policy adopted by the government is squeezing imports, with the objective of maintaining hard currency reserves. Uzbekistani foreign trade results largely depend on international gold and cotton prices. The CIS countries contribute nearly one-third to foreign trade. Uzbekistan's other principal trade partners are: the U.S., South Korea, Germany, Japan, and Turkey. The country mainly imports capital goods, machinery and chemical products.