What Are The Biggest Industries In

Uzbekistan?

A cotton field in Uzbekistan.

Uzbekistan is an agrarian state with vast deposits of oil, gold, uranium, and gas. Its economy
relies on the production of raw materials especially cotton. The Soviet-era infrastructure
including country-roads, chemical plants, irrigation networks, and factories was established to
support the cotton industry. Despite the mass production of cotton, the country does not produce
a lot of finished textile products.

Since independence, the government has committed to the transition to a diversified market-
based economy that is resilient and offers more opportunities. The implementation of economic
policies has been cautious, but the country has made significant strides. The government
continues to struggle with the black market even after introducing the official exchange rate to
stabilize the national currency. Uzbekistan’s restrictive and interventionist trade policies
continue to hinder the growth of the economy, but it has the potential to improve by
strengthening the financial system, improving the business climate to attract foreign investors,
and reducing the grip on some sectors of the economy such as the agricultural sector. The
government also places restrictions on currency conversion and import restrictions. Uzbekistan
and the International Monetary Fund have made considerable progress in curbing budget
deficit and reducing inflation. Today, the manufacturing and agriculture industries contribute
equally to the economy and account for half the GDP of the country.

The Biggest Industries In Uzbekistan

In 2006, agriculture accounted for 24% of the GDP and employed 28% of the labor force in the
country. As of 2017, the weight of agriculture in the economy had dropped to 17% of the GDP
and 21% of the labor force. The drop is attributed to the diversification of the economy in favor
 of the processing, manufacturing, and technological Industries. The primary agricultural products
include cotton, fruits, vegetables, livestock, grain, wool, and silk. The Netherlands, Russia, and
Poland have strengthened agricultural ties with Uzbekistan by providing technical support and
opening their markets. Cotton was once the preferred crop, but it has lost preference to wheat
and other grains as the country moves towards food security. Land under cotton has reduced by
half since independence paving the way for vast fields of wheat and ranches. However, the
government controls the production of cotton and wheat, and in most cases, it pays the farmers
poorly, prompting them to shift towards the production of vegetables and fruits where prices are
determined by demand and supply. Middlemen and brokers have taken advantage of these
restrictions to obtain cotton and wheat from farmers and smuggle them out of the border
to Kyrgyzstan and Kazakhstan.

External Trade And Foreign Investment

In the mid-1990s and early 2000s, government regulations on trade resulted in significant drops
of exports and imports. In 2003, the state began the process of stabilizing the economy and
liberalizing the currency, and consequently, exports rose to US$8.4 billion as of 2017. Sporadic
border closures and draconian border tariffs present barriers to legal trade of both capital
equipment and consumer product forcing farmers and businessmen to seek alternative ways of
exporting and importing goods. The country is a member of the Commonwealth of Independent
States and therefore exports and imports goods from member countries. Kazakhstan, Ukraine,
and Russia account for 40% of Uzbekistan’s foreign trade while the European Union, South
Korea, Iran, China, and Turkey are key emerging markets.

Energy And Natural Resources

Uzbekistan is the seventh largest producer of gold with an average output of about 80 tons
annually. It ranks 4th in gold reserves. Vast deposits of natural gas and oil provides enough for
export and domestic use. Reserves of lead, copper, zinc, uranium, and tungsten have also been
found. Uzbekistan is among the few self-sufficient countries in energy production. It ranks
second among the Caspian gas producers behind Turkmenistan. Natural gas and oil account for
97% of the energy produced making it the largest producer of electricity in Central Asia with a
total output of 12,500 MW. About 95% of the country is covered by electricity with the
remaining 5% being remote villages with poor accessibility.

Financial Sector
The financial system in Uzbekistan is closely controlled and monitored by the state through
regulatory actions, proclamations, decrees, and practices. Most banks are wholly or partially
owned by the government while most loans are channeled to pre-selected sectors. The slow pace
of reforms in the financial sector limits the ability of the banks to offer monetary assistant to
companies and citizens thus inhibiting the growth of the economy. Although the government
monitors and governs the activities of the commercial banks, it is unable to enforce all
regulations

Economy of Uzbekistan
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Economy of Uzbekistan

Currency Sum (UZS)

Fiscal year Calendar year

Trade organisations CIS, ECO, SCO, CISFTA, WTO (observer)

Country group Developing/Emerging[1]

Lower-middle income economy[2]

Statistics
Population 35,955,400 (2022)[3]

GDP $90.392 billion (nominal, 2023 est.)[4]

$371.646 billion (PPP, 2023 est.)[4]

GDP rank 73th (nominal, 2023)

57th (PPP, 2023)

GDP growth 5.4% (2018) 5.6% (2019e)

1.6% (2020f) 7.4% (2021f)[5]

GDP per capita $2,509 (nominal, 2023)[4]

$10,316 (PPP, 2023)[4]

GDP per capita rank 143st (nominal, 2023)

124th (PPP, 2023)

GDP by sector agriculture: 17.9%

industry: 33.7%

services: 48.5%

(2017 est.)[6]
Inflation (CPI) 14.1% (2020 est.)[4]

Population 14% (2016 est.)[6]

below poverty line
10.4% on less than $3.20/day (2019)[7]
Gini coefficient 36.7 medium (2013)[8]

Human 0.727 high (2021)[9] (101th)

Development Index
N/A IHDI (2021)[10]
Labour force 15,555,364 (2019)[11]

67.4% employment rate (2018)[12]

Labour force by agriculture: 25.9%
occupation
industry: 13.2%

services: 60.9%

(2012 est.)[6]

Unemployment 5.3% (2020)[13]

20% underemployed (2017 est.)[6]

Main industries automotive, textiles, food processing, machine building,

metallurgy, mining, hydrocarbon extraction, chemicals[6]

Ease-of-doing- 69th (easy, 2020)[14]

business rank

External

Exports $11.48 billion (2017 est.)[6]

Export goods energy products, cotton, gold, mineral fertilizers, ferrous and

nonferrous metals, textiles, foodstuffs, machinery,

 automobiles[6]

Main export Switzerland 16.4%

partners
China 13.2%

United Kingdom 12.8%

Russia 11.6%

Turkey 11.5%

Kazakhstan 6.9%

Kyrgyzstan 5.2%

Afghanistan 3.4%

Tajikistan 2.3%

Singapore 2.1% (2021)[15]

Imports $25.42 billion (2021 est.)[6]

Import goods machinery and equipment, foodstuffs, chemicals, ferrous and

nonferrous metals[6]

Main import China 23.1%

partners
Russia 21%

Kazakhstan 10.1%

South Korea 7.8%

Turkey 7.6%

Germany 2.8%

Turkmenistan 2.5%

Italy 1.79%

India 1.74%

Ukraine 1.71% (2021)[16]

Current account $1.713 billion (2017 est.)[6]

Gross external debt $16.9 billion (31 December 2017 est.)[6]

Public finances

Government debt 24.3% of GDP (2017 est.)[6]

Budget balance +0.3% (of GDP) (2017 est.)[6]

Revenues 15.22 billion (2017 est.)[6]

Expenses 15.08 billion (2017 est.)[6]

Economic aid $172.3 million from the U.S. (2005)

Foreign reserves $16 billion (31 December 2017 est.)[6]

Main data source: CIA World Fact Book

 All values, unless otherwise stated, are in US dollars.

The economy of Uzbekistan was formerly associated with a Soviet-style command

economy, with a slow transformation to a market economy.[17] However, in recent years
and since the election of President Shavkat Mirziyoyev the country has seen rapid
economic and social reform, aimed at boosting growth and transforming Uzbekistan into
a true, modern market economy.[18] International Financial Institutions,
including EBRD, Asian Development Bank and the World Bank are actively engaging in
supporting Uzbekistan's successful reform process and have rapidly increased their
presence in the country.[19]

To this point, governmental economic policy reforms had been cautious. Under the
administration of Islam Karimov currency conversion capacity was restricted and many
other government measures to control economic activity, including the implementation
of severe import restrictions and sporadic closures of Uzbekistan's borders with
neighboring Kazakhstan, Kyrgyzstan, and Tajikistan led international lending
organizations to suspend or scale back credits.

Uzbekistan is a major producer and exporter of cotton, and bans on cotton import were
implemented in the early 2010s due to international human rights concerns. However, in
2022, the Cotton Campaign and other agencies, including the US Government, lifted all
bans on the import[20] of Uzbek cotton. Uzbekistan is also a big producer of gold, with the
largest open-pit gold mine in the world. The country has substantial deposits of silver,
strategic minerals, gas, and oil.

Since 2016 and the new president Shavkat Mirziyoyev coming to his position, there
have been significant economic reforms in Uzbekistan. The country liberalised the
currency in 2017, allowing freer flows of foreign currency and allowing the import and
export of goods, and the path to foreign investment.[21] 2019 tax reforms also allowed
company consolidation, tax simplification and the professionalisation of the Private
sector.[22] The Government is also committed to privatisation of State Owned Enterprises
(SOEs), with the domestic IPO of UzAuto predicted in 2022.[23]

The Uzbekistan Economic Forum run by the Ministry of Finance of the Republic of
Uzbekistan, brings together IFIs, businesses, government officials and other
stakeholders on an annual basis. The first iteration was in Tashkent, and the Uzbekistan
Economic Forum II took place in Samarkand.[24] In December 2022, the Uzbek
Government received a loan from the World Bank of almost US$1bn to "implement
strategic reforms".[25]

GDP and employment[edit]

This is a chart depicting the trend of the gross domestic product in Uzbekistan in
constant prices of 1995, estimated by the International Monetary Fund with figures in
millions of soum.[26] The chart also shows the consumer price index(CPI) as a measure
of inflation from the same source and the end-of-year U.S. dollar exchange rate from
the Central Bank of the Uzbekistan database.[27] For purchasing power parity
comparisons in 2006, the U.S. dollar is exchanged at 340 som.[28]

GDP (constant CPI

Year US Dollar Exchange
prices) (2000=100)
 1992 330,042 1 soum 0.07

1995 302,790 36 soum 20

2000 356,325 325 soum 100

2003 402,361 980 soum 166

2006 497,525 1,240 soum 226

Uzbekistan: growth of GDP in

constant prices 1992–2008 [28]

Uzbekistan's GDP, like that of all CIS countries, declined during the first years of
transition and then recovered after 1995, as the cumulative effect of policy reforms
began to be felt. It has shown robust growth, rising by 4% per year between 1998 and
2003, and accelerating thereafter to 7%-8% per year. In 2011 the growth rate came up
to 9%.

Given the growing economy, the total number of people employed rose from 8.5 million
in 1995 to 13.5 million in 2011.[29] This healthy increase of nearly 25% in the labor force
lagged behind the increase in GDP during the same period (64%, see chart), which
implies a significant increase in labor productivity. Official unemployment is very low:
less than 30,000 job seekers were registered in government labor exchanges in 2005-
2006 (0.3% of the labor force).[29] Underemployment, on the other hand, is believed to be
quite high, especially in agriculture, which accounts for fully 28% of all employed, many
of them working part-time on tiny household plots. However, no reliable figures are
available due to the absence of credible labor surveys.

The minimum wage, public-sector wages, and old-age pensions are routinely raised
twice a year to ensure that base income is not eroded by inflation. Although no statistics
are published on average wages in Uzbekistan, pensions as a proxy for the average
wage increased significantly between 1995 and 2006, both in real terms and in U.S.
dollars. The monthly old-age pension increased in real (CPI-adjusted) soums by almost
a factor of 5 between 1995 and 2006.[29] The monthly pension in U.S. dollars was around
$20–$25 until 2000, then dropped to $15–$20 between 2001 and 2004, and now is $64.
The minimum wage was raised to $34.31 in November 2011.[30] Assuming that the
average wages in the country are at a level of 3-4 times the monthly pension, we
estimate the wages in 2006 at $100–$250 per month, or $3–$8 per day.

According to the forecast by the Asian Development Bank, the GDP in Uzbekistan in
2009 is expected to grow by 7%.[31] Meanwhile, in 2010 the Uzbekistan GDP growth is
predicted at 6,5%.[31]

Labor[edit]
Literacy in Uzbekistan is almost universal, and workers are generally well-educated and
trained accordingly in their respective fields. Most local technical and managerial
training does not meet international business standards, but foreign companies
engaged in production report that locally hired workers learn quickly and work
effectively. The government emphasizes foreign education. Each year hundreds of
students are sent to the United States, Europe, and Japan for university degrees, after
which they have a commitment to work for the government for 5 years. Reportedly,
about 60% of students who study abroad find employment with foreign companies upon
completing their degrees, despite their 5-year commitment to work in the government.
Some American companies offer their local employees special training programs in the
United States.

In addition, Uzbekistan subsidizes studies for students at Westminster International

University in Tashkent—one of the few Western-style institutions in Uzbekistan. In 2002,
the government "Istedod" Foundation (formerly as "Umid" Foundation) is paying for 98
out of 155 students studying at Westminster. For the next academic year, Westminster
is expecting to admit 360 students, from which Istedod is expecting to pay for 160
students. The education at Westminster costs $5,200 per academic year. In 2008
Management Development Institute of Singapore at Tashkent started its work. This
university provides high quality education with international degree. Tuition fee was
$5000 in 2012. In 2009 Turin Polytechnik University was opened. It is the only university
in Central Asia that prepares high quality employees for industries. With the closing or
downsizing of many foreign firms, it is relatively easy to find qualified employees, though
salaries are very low by Western standards. Salary caps, which the government
implements in an apparent attempt to prevent firms from circumventing restrictions on
withdrawal of cash from banks, prevent many foreign firms from paying their workers as
much as they would like. Labor market regulations in Uzbekistan are similar to those of
the Soviet Union, with all rights guaranteed but some rights unobserved. Unemployment
is a growing problem, and the number of people looking for jobs in Russia, Kazakhstan,
and Southeast Asia is increasing each year. Uzbekistan's Ministry of Labor does not
publish information on Uzbek citizens working abroad, but Russia's Federal Migration
Service reports 2.5 million Uzbek migrant workers in Russia. There are also indications
of up to 1 million Uzbek migrants working illegally in Kazakhstan.[32] Uzbekistan's migrant
workers may thus be around 3.5-4 million people, or a staggering 25% of its labor force
of 14.8 million.[29] The U.S. Department of State also estimates that between three and
five million Uzbek citizens of working age live outside Uzbekistan.[33]

After 2016 Uzbekistan has admitted the lack of higher education offers in the country to
support its labor market needs.[34] Since 2016 a number of higher educational providers
have started operating in Uzbekistan, including in cooperation with foreign universities.
 Moreover, private higher education providers started to emerge on the market to
[35]

provide students with necessary skills, knowledge and competencies required on the
labor market. One of the private universities in Tashkent TEAM University aims at
development of skills necessary for starting entrepreneurial activities, thus contributing
to development of businesses and private enterprises.

Prices and monetary policy[edit]

Uzbekistan experienced galloping inflation of around 1000% per year immediately after
independence (1992–1994). Stabilization efforts implemented with active guidance from
the International Monetary Fund rapidly paid off, as inflation rates were brought down to
50% in 1997 and then to 22% in 2002. Since 2003 annual inflation rates averaged less
than 10%.[28]

The severe inflationary pressures that characterized the early years of independence
inevitably led to a dramatic depreciation of the national currency. The exchange rate of
Uzbekistan's first currency, the "notional" rouble inherited from the Soviet period and its
successor, the transient "coupon soum" introduced in November 1993 in a ratio of 1:1 to
the rouble, went up from 100 roubles/US$ in the early 1992 to 3,627 roubles (or coupon
soum) in mid-April 1994. On July 1, 1994 the "coupon soum" was replaced with the
permanent new Uzbek soum (UZS) in a ratio of 1000:1, and the starting exchange rate
for the new national currency was set at 7 soum/US$, implying an almost two-fold
depreciation since mid-April. Within the first six months, between July and December
1994, the national currency depreciated further to 25 soum/US$ and continued
depreciating at a fast clip until December 2002, when the exchange rate had reached
969 soum/US$, i.e., 138 times the starting exchange rate eight and a half years earlier
or nearly 10,000 times the exchange rate in early 1992, soon after the declaration of
independence.[27] Then the depreciation of the soum virtually stopped in response to the
government's stabilization program, which at the same time dramatically reduced the
inflation rates. During the four years that followed (2003–2007) the exchange rate of the
soum to the US dollar increased only by a factor of 1.33, from 969 soum to around
1,865 soum in May 2012.

From 1996 until the spring of 2003, the official and so-called "commercial" exchange
rate – both set administratively by the Central Bank – were highly overvalued. Many
businesses and individuals were unable to buy dollars legally at these "low" rates, so a
widespread black market developed to meet hard currency demand. The spread
between the official exchange rate and the curb rate widened especially after the
Russian financial crisis of August 1998: at the end of 1999 the curb rate stood at
550 soum/US$ compared with the official rate of 140 soum/US$, a gap by nearly a
factor of 4 (up from a factor of "only" 2 in 1997 and the first half of 1998). [36] By mid-2003,
the government's stabilization and liberalization efforts had reduced the gap between
the black market, official, and commercial rates to approximately 8% and it quickly
disappeared as the soum was made convertible after October 2003. Today, four foreign
currencies—the U.S. dollar, the euro, the pound sterling, and the yen—are freely
exchanged in commercial booths all around the cities, while other currencies, including
the Russian rouble and the Kazakh tenge, are bought and sold by individual ("black
market") money changers, who are allowed to operate openly without harassment. The
foreign exchange regime since October 2003 is characterized as "controlled floating
rate".[37] Liberalization of the trade regime remains a prerequisite for Uzbekistan to
proceed to an IMF-financed program. In 2012, "black market" rate is again significantly
higher than official rate, 2,850 soum/US$ vs. 1,865 soum/US$ (as of mid-June 2011).
This curb rate is often referred to as 'bazar rate', because money changers operate at or
near 'bazars' - large farmer markets.

Tax collection rates remained high, due to the use of the banking system by the
government as a collection agency. Technical assistance from the World Bank, Office of
Technical Assistance at the U.S. Treasury Department, and UNDP is being provided in
reforming the Central Bank and Ministry of Finance into institutions capable of
conducting market-oriented fiscal and monetary policy.

Agriculture[edit]
In 2018, Uzbekistan produced:[38]

 5.4 million tonnes of wheat;

 2.9 million tons of potato;
 2.2 million tons of cotton (8th largest producer in the world);
 2.2 million tons of tomato (14th largest producer in the world);
 2.1 million tonnes of carrot (2nd largest producer in the world, just behind China);
 1.8 million tons of watermelon (8th largest producer in the world);
 1.5 million tons of grape (15th largest producer in the world);
 1.4 million tons of onion (15th largest producer in the world);
 1.1 million tons of apple (14th largest producer in the world);
 857 thousand tons of cucumber (7th largest producer in the world);
 743 thousand tons of cabbage;
 493 thousand tons of apricot (2nd largest producer in the world, just behind Turkey);
 413 thousand tons of maize;
 254 thousand tons of garlic;
 221 thousand tons of rice;
 172 thousand tons of cherry;
 161 thousand tons of peach;
 134 thousand tons of plum (17th largest producer in the world);
In addition to smaller productions of other agricultural products.[38]

At the end of 2013, the government announced through the Central Bank of the
Republic of Uzbekistan that it predicted agriculture as playing a major component of the
country's economic development in the future.[39] Agriculture in Uzbekistan employs 28%
of labor force and contributes 24% of GDP (2006 data).[29] Another 8% of GDP is from
processing of domestic agricultural output.[40] Cotton, once Uzbekistan's star cash
earner, has lost much its luster since independence as wheat began to gain prominence
from considerations of food security for the rapidly growing population. Areas cropped to
cotton were reduced by more than 25% from 2 million hectares in 1990 to less than 1.5
million hectares in 2006, while wheat cultivation jumped 60% from around 1 million
hectares in 1990 to 1.6 million hectares in 2006. Cotton production dropped from 3
million tons annually in the pre-independence decade to around 1.2 million tons since
1995, but even at these reduced levels Uzbekistan produces 3 times as much cotton as
all the other Central Asian countries and Azerbaijan combined. Cotton exports tumbled
from highs of around 45% of Uzbekistan's total exports in the early 1990s to 17% in
2006. Uzbekistan is the largest producer of jute in West Asia and it also produces
significant quantities of silk (Uzbek ikat), fruit, and vegetables, with food products
contributing nearly 8% of total exports in 2006. Virtually all agriculture requires irrigation,
but because of budgetary constraints there has been practically no expansion of
irrigated area since independence: it remains static at 4.2 million hectares, the level
reached by 1990 after rapid growth during the Soviet period.

Government intervention in agriculture is reflected in the persistence of state orders for

the two main cash crops, cotton and wheat. Farmers receive binding directives on the
area to be cropped to these commodities and are obliged to surrender their harvest to
designated marketers at state-fixed prices. The incomes of farmers and agricultural
workers are substantially lower than the national average because the government pays
them less than the world prices for their cotton and wheat, using the difference to
subsidize capital intensive industrial concerns, such as factories
producing automobiles, airplanes, and tractors. Consequently, many farmers focus on
production of fruits and vegetables on their small household plots, because the prices of
these commodities are determined by supply and demand, not by government decrees.
Farmers also resort to smuggling cotton and especially wheat across the border with
Kazakhstan and Kyrgyzstan in order to obtain higher prices.

The government's discriminatory pricing for the main cash crops, cotton and wheat, is
apparently responsible for the exceptionally rapid growth of the cattle herd in recent
years, as the prices of milk and meat, like those of fruits and vegetables, are also
determined by market forces. The number of cattle increased from 4 million head in
1990 to 7 million head in 2006, and virtually all these animals are maintained by rural
families with just 2-3 head per household.[29] Sales of own-produced milk, meat, and
vegetables in town markets are an important source for augmenting rural family
incomes.

The Soviet practice of using "volunteer labor" to help gathering the cotton harvest
continues in Uzbekistan where schoolchildren, university students, medical
professionals, and state employees are driven en masse out to the fields every year. [32] A
recent article posted by a domestic news agency (admittedly with strong anti-
government leanings) describes Uzbekistan's cotton as "riches gathered by the hands
of hungry children".[41]

Natural resources and energy[edit]

In 2019, the country was the 5th largest world producer of uranium;[42] 12th largest world
producer of gold;[43] 7th largest world producer of rhenium;[44] 12th largest world producer
of molybdenum;[45] 21st largest world producer of phosphate,[46] and the 19th largest world
producer of graphite[47]

Minerals and mining also are important to Uzbekistan's economy. Gold, alongside
cotton, is a major foreign exchange earner, unofficially estimated at around 20% of total
exports.[33] Uzbekistan is the world's seventh-largest gold producer, mining about 80 tons
per year, and holds the fourth-largest reserves in the world. Uzbekistan has an
abundance of natural gas, used both for domestic consumption and export; oil used for
domestic consumption; and significant reserves of copper, lead, zinc, tungsten,
and uranium. Inefficiency in energy use is generally high, because the low controlled
prices do not stimulate consumers to conserve energy. Uzbekistan is a partner country
of the EU INOGATE energy programme, which has four key topics: enhancing energy
security, convergence of member state energy markets on the basis of EU internal
energy market principles, supporting sustainable energy development, and
attracting investment for energy projects of common and regional interest.[48]
The country's largest steel manufacturer is Uzmetkombinat.[49] The company is planning
an IPO in 2023.[50]

External trade and investment[edit]

Uzbekistan export destinations in 2006

Since the 2017 liberalisation of the foreign exchange market, Uzbekistan has seen rapid
growth in exports. Traditional export products such as gas and cotton are now kept
domestically for processing. They have been replaced by a vast growth in exports in
areas such as fruit,[51] textiles[52] and home appliances. In recent years textile export has
doubled in revenue to almost US$3bn worth of goods exports.[53] Home appliance
manufacturer Artel has seen exports rise from $5.6m in 2017, to around $100m in 2021.
[54]

Before this, the system of multiple exchange rates combined with the highly regulated
trade regime caused both imports and exports to drop each from about US$4.5 billion in
1996 to less than US$3 billion in 2002.[29] The success of stabilization and currency
liberalization in 2003 has led to significant increases in exports and imports in recent
years, although imports have increased much less rapidly: while exports had more than
doubled to US$15.5 by 2011, imports had risen to US$6.5 billion only, reflecting the
impact of the government's import substitution policies designed to maintain hard
currency reserves. Draconian tariffs, sporadic border closures, and border crossing
"fees" have a negative effect on legal imports of both consumer products and capital
equipment.

Uzbekistan is a member of the International Monetary Fund, 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. In 2002, Uzbekistan was
again placed on the special "301" Watch List for lack of intellectual copyright protection.

Daewoo Gentra is currently a flagship of UzDaewooAuto.

Until 2017, according to EBRD transition indicators,[55] Uzbekistan's investment climate

remains among the least favorable in the CIS, with only Belarus and Turkmenistan
ranking lower. The unfavorable investment climate has caused foreign investment
inflows to dwindle to a trickle. It is believed that Uzbekistan has the lowest level
of foreign direct investment per capita in the CIS. Since Uzbekistan's independence,
U.S. firms have invested roughly $500 million in the country, but due to declining
investor confidence, harassment, and currency convertibility problems, numerous
international investors have left the country or are considering leaving.[33] In 2005, the
Central Bank has revoked the license of the nascent Biznes Bank citing unspecified
violations of local currency exchange rules. The revocation prompted immediate
bankruptcy procedures, under which clients' deposits stay arrested for two month. No
interest was accrued during that two-month period. In 2006, the Government of
Uzbekistan forced out Newmont Mining Corporation (at the time the largest U.S.
investor) from its gold mining joint venture in the Muruntau gold mine. Newmont and the
government resolved their dispute, but the action adversely affected Uzbekistan's image
among foreign investors. The government attempted the same with British-owned Oxus
Mining. Coscom, a U.S.-owned telecommunications company, involuntarily sold its
stake in a joint venture to another foreign company. GM-DAT, a Korean subsidiary
of GM, is the only known U.S. business to have entered Uzbekistan in over two years. It
recently signed a joint-venture agreement with UzDaewooAuto to assemble Korean-
manufactured cars for export and domestic sale. Other large U.S. investors in
Uzbekistan include Case IH, manufacturing and servicing cotton harvesters and
tractors; Coca-Cola, with bottling plants in Tashkent, Namangan,
and Samarkand; Texaco, producing lubricants for sale in the Uzbek market; and Baker
Hughes, in oil and gas development.

Banking[edit]
Uzbekistan's banks have demonstrated reasonably stable performance in a largely
state-dominated local economy. Sector stability is currently supported by rapid
economic growth, low exposure to external financial markets and the strong external
and fiscal position of the sovereign. However, the sector remains vulnerable to possible
economic shocks due to weak corporate governance and risk management, fast recent
asset growth, significant directed lending and acquisitions of problem assets. Banks’
foreign currency obligations, specifically those arising from trade finance, are
particularly vulnerable due to existing foreign exchange constraints.[56]

According to Fitch Ratings, there are notable risks of asset quality deterioration in case
of a reversal in economic trends. The funding base is mainly short-term, largely sourced
from corporate current accounts, while retail funds account for only a small 25% of total
deposits. Longer-term funding is provided by the Ministry of Finance and other state
agencies, which comprise a notable proportion of sector liabilities. Foreign funding is
small, estimated at about 10% of the total liabilities, and plans for further borrowings are
moderate. Liquidity management is constrained be the lack of deep capital markets, and
banks generally tend to hold substantial cash reserves on their balance sheets. The
quality of capital is sometimes compromised by less conservative regulatory
requirements for recognition of credit impairment and by investments in non-core
assets.

Retail[edit]
Uzbekistan's retail sector remains dominated by traditional markets, known as bozorlar,
where individual vendors sell food, housewares, clothing, and other consumer goods.
But the country's retail sector is rapidly modernizing.[57] The construction of modern
supermarkets and malls has accelerated in recent years.[58] The country's retail market
was estimated at $17 billion in 2017 and rising incomes, population growth, and a move
from informal to formal retail are expected to drive continued expansion of the sector.
[59]
Major supermarket chains include local players Korzinka.uz and Makro
(Uzbekistan) and the French multinational chain Carrefour, which will open its first store
in Uzbekistan in 2021.[60] The country's first modern shopping malls are located in
Tashkent, and include the Samarkand Darvoza and Compass developments. The
sector has also seen growth in online retail.[61] In 2021, Korzinka acquired a US$40m
stake in Angelsey Foods, the Singapore mother entity of Korzinka.[62] In 2021, the
company also signed a signed $12 million in debt financing to promote food security
and sustain the livelihoods of more than 5,000 employees and 1,200 farm workers in
Uzbekistan.[63]

Tourism[edit]
Main article: Tourism in Uzbekistan

Silk road route's three important cities are located in Uzbekistan,

namely Khiva, Bukhara and Samarkand. There are numerous well connected tourist
destinations in Uzbekistan.[64] There are five UNESCO World Heritage Sites in
Uzbekistan and 30 are on tentative list.[65]

Miscellaneous data[edit]
The following table shows the main economic indicators in 1993–2017.[66]

199 199 200 200 200 200 200 200 201 201 201 201 201 201 201 201
Year
3 5 0 5 6 7 8 9 0 1 2 3 4 5 6 7

GDP in 38.2 37.4 49. 71. 79. 89. 99. 108 118 131 144 158 174 190 207 222
$ 1 2 15 64 39 24 18 .03 .65 .15 .52 .60 .36 .17 .62 .56
(PPP) Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln.

GDP
per
1,74 1,64 2,0 2,7 3,0 3,3 3,6 3,9 4,2 4,6 4,8 5,2 5,6 6,0 6,5 6,9
capita
8 9 05 64 20 49 72 46 77 55 54 44 69 76 19 29
in $
(PPP)

GDP
−2.6 −0.9 3.8 7.0 7.5 9.5 9.0 8.1 8.5 8.3 8.2 8.0 8.0 7.9 7.8 5.3
growth
% % % % % % % % % % % % % % % %
(real)

Inflatio
n 534. 304. 25. 10. 13. 11. 13. 12. 12. 12. 11. 11. 9.1 8.5 8.0 12.
(in 2% 6% 0% 7% 1% 1% 1% 3% 3% 4% 9% 7% % % % 5%
Percent)

Gover ... ... 42 28 21 16 12 11 10 10 11 11 11 9% 11 25

nment % % % % % % % % % % % % %
debt
(Percent
age of
GDP)