In 2024, the economy of the Republic of Uzbekistan demonstrated stable growth, confirming its dynamic development and ability to adapt to changing conditions. According to preliminary data, the gross domestic product (GDP) of the country at current prices amounted to 1,454,573.9 billion soums, increasing in real terms by 6.5% compared to 2023. The GDP deflator index stood at 113.3% relative to the prices of the previous year.
Key GDP Indicators
- GDP in USD equivalent: Nominal GDP amounted to $114.96 billion, showcasing economic resilience even with an average exchange rate of 12,652.7 soums per USD in 2024.
- GDP per capita growth: In 2024, GDP per capita reached 39,131.4 thousand soums ($3,092.7), growing by 4.4% in real terms compared to 2023.
Dynamics of GDP
From 2020 to 2024, GDP showed a steady growth trend. In 2024, the growth rate was 6.5%, the highest figure in the last five years. The GDP deflator index remained stable, ranging between 113% and 114%.
Structure of GDP by Economic Activities
In 2024, the structure of Uzbekistan’s GDP displayed the following changes:
- The share of the service sector increased from 46.2% to 47.4%.
- The share of industry grew from 25.3% to 26.4%.
- The share of agriculture decreased from 21.2% to 19.2%.
- The share of construction fell from 7.3% to 7.0%.
GDP per Capita and Growth Rates
Over the past five years, GDP per capita grew by 19.5%, reaching 39,131.4 thousand soums. Real growth compared to the previous year was 4.4%, indicating increased labor productivity and living standards.
Gross Value Added of Agriculture, Forestry, and Fisheries
The gross value added in agriculture amounted to 266,565.0 billion soums, showing a 3.1% increase in 2024. The primary contribution came from crop and livestock production, accounting for 96.6% of the total.
Gross Value Added of Industry
The industrial sector grew by 6.8%, with a gross value added of 365,894.6 billion soums. Key drivers of growth included:
- Manufacturing industry (+7.7%).
- Mining and quarrying (+1.9%).
- Electricity, gas, and air supply (+5.4%).
Gross Value Added of Construction
The construction sector grew by 8.8%, reaching 96,801.9 billion soums. Civil engineering projects saw a growth rate of 24.7%.
Gross Value Added of the Service Sector
The service sector grew by 7.7%, with a gross value added of 657,348.5 billion soums. Notable growth was observed in:
- Information and communication: +24.7%.
- Trade: +11.5%.
- Accommodation and food services: +10.7%.
Gross Value Added of Trade
The gross value added of trade amounted to 86,739.1 billion soums, an increase of 11.5%. Retail trade accounted for 56.1% of the total.
Gross Value Added of Transportation and Storage
The gross value added in the transport and storage sector reached 75,464.6 billion soums, with a growth rate of 8.5%. Road transport services accounted for 55.7% of the total.
Gross Value Added of Information and Communication
The information and communication sector grew by 24.7%, with a value of 36,864.0 billion soums. The primary contribution came from mobile and internet services.
Value Added by Small Businesses in Various Sectors
Small businesses continue to play a vital role in Uzbekistan’s economy. In 2024, small businesses accounted for 56% of GDP, making significant contributions in agriculture, construction, and services.
The Shadow Economy
The shadow economy, also known as the informal and unobserved economy, remains a significant factor in GDP estimation. In 2024, the shadow economy accounted for approximately 20% of total GDP.
This includes:
- Informal employment: Significant economic activity remains outside official reporting, particularly in agriculture, trade, and services.
- Shadow transactions: Deals not officially recorded to avoid taxation or other regulatory requirements.
- Hidden incomes: Incomes not reflected in official statistics, including small businesses, property rentals, and informal financial operations.
To enhance economic transparency, Uzbekistan has taken the following measures:
- Development of digital technologies: Introduction of electronic accounting and reporting systems.
- Support for entrepreneurs: Government programs aimed at improving financial literacy and legalizing business activities.
- Strengthening control: Enhanced monitoring by tax authorities and increased accountability for informal activities.
While the shadow economy provides employment and income for many, it poses risks to tax revenues and long-term economic stability. Addressing these challenges will be critical for Uzbekistan’s future economic development.
Conclusions and Outlook
2024 was a year of stable economic growth for Uzbekistan, driven by the development of key economic sectors, digitalization, and infrastructure improvement. Expanding high-tech production, reducing the shadow economy, and boosting exports remain top priorities. Uzbekistan is strengthening its position as a regional leader in Central Asia.