Over the past two decades, Asia and the Pacific have achieved remarkable progress in regional economic integration, covering trade, investment, finance, and the movement of people. According to the latest “Asian Economic Integration Report 2025: Harnessing the Benefits of Regional Cooperation and Integration”, published by the Asian Development Bank (ADB), the depth of Asia’s regional linkages is now comparable to that of the European Union.

But amidst growing global uncertainties, the question for countries like Uzbekistan becomes more pressing: how can Uzbekistan leverage this regional momentum to boost sustainable growth and resilience?

Uzbekistan and Regional Integration: Current Status

Uzbekistan actively participates in regional cooperation frameworks, particularly the Central Asia Regional Economic Cooperation (CAREC) program, which involves 11 member countries. CAREC has helped launch projects in transport, trade, energy, and digitalization. However, according to the ADB, Central Asia’s level of regional integration remains low, especially in financial flows and foreign direct investment (FDI), compared to Southeast and East Asia.

Uzbekistan’s intraregional trade is steadily increasing, especially with China, Kazakhstan, and the Russian Federation. However, the share of value-added in its exports remains limited, hindering deeper participation in regional value chains.

Trade and Value Chains: Unlocking Uzbekistan’s Potential

Between 1990 and 2023, intra-Asian trade grew at an annual rate of 8.2%, outpacing trade with the rest of the world. As a CAREC member, Uzbekistan has an opportunity to expand its role in regional supply chains, particularly in agribusiness, light manufacturing, and extractive sectors.

However, the report highlights that preferential trade agreements (PTAs) in Asia remain narrow in scope and are often underutilized by businesses, especially SMEs. This also applies to Uzbekistan, where awareness and usage of trade preferences are still low.

Recommendation: Develop a national trade preference platform, enhance exporter training on rules of origin, and align product standards with key partners (China, EU, India).

FDI: From Commodities to Technology and Green Growth

The report confirms a rise in intra-Asian FDI, especially in services, digital infrastructure, and green industries. From 2013 to 2023, the share of climate-related greenfield investments in Asia rose from 8% to 27%, and services accounted for 58% of total FDI.

For Uzbekistan, this represents an opportunity to attract investors in renewable energy, logistics, IT, and agritech. CAREC and ADB continue to support regional investment facilitation efforts, but challenges remain: bureaucracy, lack of transparency, and regulatory hurdles.

Recommendation: Adopt investment facilitation tools, improve investor support systems, and proactively promote priority projects using ADB platforms.

Financial Integration: The Weakest Link

The report emphasizes that financial integration remains Asia’s weakest dimension, and Central Asia is no exception. While Uzbekistan has made progress in banking reforms, regional financial instruments (e.g., the Chiang Mai Initiative) remain underused.

Yet, regional financial cooperation could serve as a stabilizing force amid growing global volatility.

Recommendation: Uzbekistan should actively engage in regional financial dialogue, explore safety-net mechanisms, and promote regional capital market development.

People Mobility, Remittances, and Tourism: Social Capital of Integration

Remittance inflows to Asia hit $392.1 billion in 2024, making up 43% of the global total. Uzbekistan remains among the top remittance-receiving economies. However, remittance costs in Asia average 5.9% per transaction, above the UN’s 3% SDG target.

The development of digital remittance platforms and fintech solutions can lower costs and increase financial inclusion.

Tourism is another underutilized sector. While Southeast Asia has liberalized cross-border travel and logistics, Central Asia lags behind due to restrictive visa regimes and weak infrastructure. ADB highlights the need for regional connectivity and investment in airports and ground logistics.

Recommendation: Uzbekistan should prioritize tourism infrastructure, streamline visa policies, and develop digital tourism platforms.

Conclusion: A Window of Opportunity

Uzbekistan stands at a pivotal moment to benefit from Asia’s deepening integration. To unlock its full potential, it must:

• Move from participation to leadership in regional initiatives.

• Attract FDI in green, digital, and service sectors.

• Deepen financial cooperation and capital market development.

• Enhance human capital mobility through labor and migration policies.

• Improve institutional frameworks to build investor trust.

In a world shaped by shifting global dynamics, regional integration could become Uzbekistan’s most powerful engine for inclusive and resilient growth.

Source: Asian Development Bank (ADB)