Experts from the Institute for Forecasting and Macroeconomic Research (IPMI) assessed the level of diversification of the republic’s industrial exports.

Export diversification involves increasing the number of exported goods and achieving a balanced export structure.

The study analyzed the period from 2010 to 2021. It is known that during this period the index of diversification of exports of industrial products increased from 4.82 to 5.76. In 2010, half of industrial exports were mineral fuels and cotton, and in 2021, the share of these products was 22 percent.

The index of diversification of exports of chemical and pharmaceutical products also increased – from 1.56 to 2.76, due to a decrease in the share of exports of fertilizers from 78.5% to 43% and an increase in exports of pharmaceutical products of a number of other goods.

The increase in the level of diversification of exports of the group of textiles and clothing – from 1.21 to 2.34, is due to a significant decrease in the volume of cotton exports and a decrease in its share in exports and an increase in the share of products with a higher level of processing.

In the leather and footwear industry, the export diversification index increased from 1.67 to 2.44. In 2010, raw materials accounted for 75% of exports of the commodity group, in 2021 – already 43% due to the growth in exports of finished leather goods.

The index of diversification of exports of engineering products increased from 2.04 to 2.59. The share of exports of land transport decreased and the share of exports of electrical machinery and equipment, mechanical equipment and similar devices increased.

As conclusion, it can be noted that the Uzbek industry has made progress in expanding and diversifying exports. At the same time, there is significant potential and reserves for further improvements. These reserves can be activated through active integration in objectively changing external conditions.