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The Economy of Uzbekistan

Uzbekistani Economy

Uzbekistan's map

Economy - overview: Uzbekistan is a dry, landlocked country of which 11% consists of intensely cultivated, irrigated river valleys. More than 60% of its population lives in densely populated rural communities. Uzbekistan is now the world's second-largest cotton exporter and fifth largest producer; it relies heavily on cotton production as the major source of export earnings and has come under increasing international criticism for the use of child labor in its annual cotton harvest. Other major export earners include gold, natural gas, and oil. Following independence in September 1991, the government sought to prop up its Soviet-style command economy with subsidies and tight controls on production and prices. While aware of the need to improve the investment climate, the government still sponsors measures that often increase, not decrease, its control over business decisions. A sharp increase in the inequality of income distribution has hurt the lower ranks of society since independence. In 2003, the government accepted Article VIII obligations under the IMF, providing for full currency convertibility. However, strict currency controls and tightening of borders have lessened the effects of convertibility and have also led to some shortages that have further stifled economic activity. The Central Bank often delays or restricts convertibility, especially for consumer goods. Potential investment by Russia and China in Uzbekistan's gas and oil industry, as well as increased cooperation with South Korea in the realm of civil aviation, may boost growth prospects. In November 2005, Russian President Vladimir PUTIN and Uzbekistan President KARIMOV signed an "alliance," which included provisions for economic and business cooperation. Russian businesses have shown increased interest in Uzbekistan, especially in mining, telecom, and oil and gas. In 2006, Uzbekistan took steps to rejoin the Collective Security Treaty Organization (CSTO) and the Eurasian Economic Community (EurASEC), which it subsequently left in 2008, both organizations dominated by Russia. Uzbek authorities have accused US and other foreign companies operating in Uzbekistan of violating Uzbek tax laws and have frozen their assets.

GDP:

GDP - real growth rate: 8.9% (2008 est.) 9.5% (2007 est.) 7.3% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 28.2% industry: 33.9% services: 37.9% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 2.8% highest 10%: 29.6% (2003)

Distribution of family income - Gini index: 36.8 (2003)

Inflation rate (consumer prices):

Labor force: 15.28 million (2008 est.)

Labor force - by occupation: agriculture: 44% industry: 20% services: 36% (1995)

Unemployment rate: 0.9% officially by the Ministry of Labor, plus another 20% underemployed (2008 est.)

Budget: revenues: $8.005 billion expenditures: $8.127 billion (2008 est.)

Industries: textiles, food processing, machine building, metallurgy, gold, petroleum, natural gas, chemicals

Industrial production growth rate: 11.2% (2008 est.)

Electricity - production: 48.79 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 42.23 billion kWh (2006 est.)

Electricity - exports: 11.52 billion kWh (2006 est.)

Electricity - imports: 11.44 billion kWh (2006 est.)

Oil - production: 99,260 bbl/day (2007 est.)

Oil - consumption: 157,100 bbl/day (2006 est.)

Oil - exports: 11,940 bbl/day (2005)

Oil - imports: 31,440 bbl/day (2005)

Oil - proved reserves: 594 million bbl (1 January 2008 est.)

Natural gas - production: 65.19 billion cu m (2007 est.)

Natural gas - consumption: 51.18 billion cu m (2007 est.)

Natural gas - exports: 14.01 billion cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 1.841 trillion cu m (1 January 2008 est.)

Agriculture - products: cotton, vegetables, fruits, grain; livestock

Exports: $9.96 billion f.o.b. (2008 est.)

Exports - commodities: cotton, gold, energy products, mineral fertilizers, ferrous and non-ferrous metals, textiles, food products, machinery, automobiles

Exports - partners: Russia 22.4%, Poland 10.4%, Turkey 9.4%, Kazakhstan 6.1%, Hungary 6%, China 5.6%, Ukraine 4.8%, Bangladesh 4.3% (2007)

Imports: $6.5 billion f.o.b. (2008 est.)

Imports - commodities: machinery and equipment, foodstuffs, chemicals, ferrous and non-ferrous metals

Imports - partners: Russia 30.1%, China 13.3%, South Korea 13%, Germany 6.3%, Kazakhstan 6.2%, Ukraine 4% (2007)

Debt - external: $4.052 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Uzbekistani soum (UZS) per US dollar - 1,317 (2008 est.), 1,263.8 (2007), 1,219.8 (2006), 1,020 (2005), 971.265 (2004)

Fiscal year: