Home

Uzbekistan vs. Kyrgyzstan

Economy

UzbekistanKyrgyzstan
Economy - overview

Uzbekistan is a doubly landlocked country in which 51% of the population lives in urban settlements; the agriculture-rich Fergana Valley, in which Uzbekistan's eastern borders are situated, has been counted among the most densely populated parts of Central Asia. Since its independence in September 1991, the government has largely maintained its Soviet-style command economy with subsidies and tight controls on production, prices, and access to foreign currency. Despite ongoing efforts to diversify crops, Uzbek agriculture remains largely centered on cotton; Uzbekistan is the world's fifth-largest cotton exporter and seventh-largest producer. Uzbekistan's growth has been driven primarily by state-led investments, and export of natural gas, gold, and cotton provides a significant share of foreign exchange earnings.

Recently, lower global commodity prices and economic slowdowns in neighboring Russia and China have hurt Uzbekistan's trade and investment and worsened its foreign currency shortage. Aware of the need to improve the investment climate, the government is taking incremental steps to reform the business sector and address impediments to foreign investment in the country. Since the death of first President Islam KARIMOV and election of President Shavkat MIRZIYOYEV, emphasis on such initiatives and government efforts to improve the private sector have increased. In the past, Uzbek authorities accused US and other foreign companies operating in Uzbekistan of violating Uzbek laws and have frozen and seized their assets.

As a part of its economic reform efforts, the Uzbek Government is looking to expand opportunities for small and medium enterprises and prioritizes increasing foreign direct investment. In September 2017, the government devalued the official currency rate by almost 50% and announced the loosening of currency restrictions to eliminate the currency black market, increase access to hard currency, and boost investment.

Kyrgyzstan is a landlocked, mountainous, lower middle income country with an economy dominated by minerals extraction, agriculture, and reliance on remittances from citizens working abroad. Cotton, wool, and meat are the main agricultural products, although only cotton is exported in any quantity. Other exports include gold, mercury, uranium, natural gas, and - in some years - electricity. The country has sought to attract foreign investment to expand its export base, including construction of hydroelectric dams, but a difficult investment climate and an ongoing legal battle with a Canadian firm over the joint ownership structure of the nation's largest gold mine deter potential investors. Remittances from Kyrgyz migrant workers, predominantly in Russia and Kazakhstan, are equivalent to more than one-quarter of Kyrgyzstan's GDP.

Following independence, Kyrgyzstan rapidly implemented market reforms, such as improving the regulatory system and instituting land reform. In 1998, Kyrgyzstan was the first Commonwealth of Independent States country to be accepted into the World Trade Organization. The government has privatized much of its ownership shares in public enterprises. Despite these reforms, the country suffered a severe drop in production in the early 1990s and has again faced slow growth in recent years as the global financial crisis and declining oil prices have dampened economies across Central Asia. The Kyrgyz government remains dependent on foreign donor support to finance its annual budget deficit of approximately 3 to 5% of GDP.

Kyrgyz leaders hope the country's August 2015 accession to the Eurasian Economic Union (EAEU) will bolster trade and investment, but slowing economies in Russia and China and low commodity prices continue to hamper economic growth. Large-scale trade and investment pledged by Kyrgyz leaders has been slow to develop. Many Kyrgyz entrepreneurs and politicians complain that non-tariff measures imposed by other EAEU member states are hurting certain sectors of the Kyrgyz economy, such as meat and dairy production, in which they have comparative advantage. Since acceding to the EAEU, the Kyrgyz Republic has continued harmonizing its laws and regulations to meet EAEU standards, though many local entrepreneurs believe this process as disjointed and incomplete. Kyrgyzstan's economic development continues to be hampered by corruption, lack of administrative transparency, lack of diversity in domestic industries, and difficulty attracting foreign aid and investment.

GDP (purchasing power parity)$235.021 billion (2019 est.)

$222.634 billion (2018 est.)

$211.134 billion (2017 est.)

note: data are in 2017 dollars
$33.918 billion (2019 est.)

$32.455 billion (2018 est.)

$31.28 billion (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate5.3% (2017 est.)

7.8% (2016 est.)

7.9% (2015 est.)
4.6% (2017 est.)

4.3% (2016 est.)

3.9% (2015 est.)
GDP - per capita (PPP)$6,999 (2019 est.)

$6,755 (2018 est.)

$6,519 (2017 est.)

note: data are in 2017 dollars
$5,253 (2019 est.)

$5,133 (2018 est.)

$5,047 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 17.9% (2017 est.)

industry: 33.7% (2017 est.)

services: 48.5% (2017 est.)
agriculture: 14.6% (2017 est.)

industry: 31.2% (2017 est.)

services: 54.2% (2017 est.)
Population below poverty line14.1% (2013 est.)20.1% (2019 est.)
Household income or consumption by percentage sharelowest 10%: 2.8%

highest 10%: 29.6% (2003)
lowest 10%: 4.4%

highest 10%: 22.9% (2014 est.)
Inflation rate (consumer prices)12.5% (2017 est.)

8% (2016 est.)

note: official data; based on independent analysis of consumer prices, inflation reached 22% in 2012
1.1% (2019 est.)

1.5% (2018 est.)

3.1% (2017 est.)
Labor force13.273 million (2018 est.)2.841 million (2017 est.)
Labor force - by occupationagriculture: 25.9%

industry: 13.2%

services: 60.9% (2012 est.)
agriculture: 48%

industry: 12.5%

services: 39.5% (2005 est.)
Unemployment rate5% (2017 est.)

5.1% (2016 est.)

note: official data; another 20% are underemployed
3.18% (2019 est.)

2.59% (2018 est.)
Distribution of family income - Gini index36.8 (2003)

44.7 (1998)
27.7 (2018 est.)

29 (2001)
Budgetrevenues: 15.22 billion (2017 est.)

expenditures: 15.08 billion (2017 est.)
revenues: 2.169 billion (2017 est.)

expenditures: 2.409 billion (2017 est.)
Industriestextiles, food processing, machine building, metallurgy, mining, hydrocarbon extraction, chemicalssmall machinery, textiles, food processing, cement, shoes, lumber, refrigerators, furniture, electric motors, gold, rare earth metals
Industrial production growth rate4.5% (2017 est.)10.9% (2017 est.)
Agriculture - productsmilk, wheat, potatoes, carrots/turnips, cotton, tomatoes, vegetables, grapes, onions, watermelonsmilk, potatoes, sugar beet, maize, wheat, barley, tomatoes, watermelons, onions, carrots/turnips
Exports$11.48 billion (2017 est.)

$11.2 billion (2016 est.)
$2.742 billion (2019 est.)

$2.288 billion (2018 est.)

$2.352 billion (2017 est.)
Exports - commoditiesgold, natural gas, cotton fibers, copper, ethylene polymers (2019)gold, precious metals, various beans, refined petroleum, scrap copper (2019)
Exports - partnersSwitzerland 19%, United Kingdom 17%, Russia 15%, China 14%, Kazakhstan 9%, Turkey 8%, Kyrgyzstan 5% (2019)United Kingdom 56%, Kazakhstan 13%, Russia 13%, Uzbekistan 5% (2019)
Imports$11.42 billion (2017 est.)

$10.92 billion (2016 est.)
$5.477 billion (2019 est.)

$5.32 billion (2018 est.)

$4.953 billion (2017 est.)
Imports - commoditiescars and vehicle parts, packaged medicines, refined petroleum, aircraft, construction vehicles (2019)refined petroleum, footwear, clothing and apparel, broadcasting equipment, walnuts (2019)
Imports - partnersChina 23%, Russia 18%, South Korea 11%, Kazakhstan 9%, Turkey 6%, Germany 5% (2019)China 53%, Russia 17%, Kazakhstan 7%, Uzbekistan 7%, Turkey 5% (2019)
Debt - external$16.9 billion (31 December 2017 est.)

$16.76 billion (31 December 2016 est.)
$8.372 billion (2019 est.)

$8.066 billion (2018 est.)
Exchange ratesUzbekistani soum (UZS) per US dollar -

3,906.1 (2017 est.)

2,966.6 (2016 est.)

2,966.6 (2015 est.)

2,569.6 (2014 est.)

2,311.4 (2013 est.)
soms (KGS) per US dollar -

68.35 (2017 est.)

69.914 (2016 est.)

69.914 (2015 est.)

64.462 (2014 est.)

53.654 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt24.3% of GDP (2017 est.)

10.5% of GDP (2016 est.)
56% of GDP (2017 est.)

55.9% of GDP (2016 est.)
Reserves of foreign exchange and gold$16 billion (31 December 2017 est.)

$14 billion (31 December 2016 est.)
$2.177 billion (31 December 2017 est.)

$1.97 billion (31 December 2016 est.)
Current Account Balance$1.713 billion (2017 est.)

$384 million (2016 est.)
-$306 million (2017 est.)

-$792 million (2016 est.)
GDP (official exchange rate)$57.789 billion (2019 est.)$8.442 billion (2019 est.)
Credit ratingsFitch rating: BB- (2018)

Moody's rating: B1 (2019)

Standard & Poors rating: BB- (2018)
Moody's rating: B2 (2015)

Standard & Poors rating: NR (2016)
Ease of Doing Business Index scoresOverall score: 69.9 (2020)

Starting a Business score: 96.2 (2020)

Trading score: 58.2 (2020)

Enforcement score: 71.9 (2020)
Overall score: 67.8 (2020)

Starting a Business score: 93 (2020)

Trading score: 74.7 (2020)

Enforcement score: 50.4 (2020)
Taxes and other revenues31.2% (of GDP) (2017 est.)28.7% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)0.3% (of GDP) (2017 est.)-3.2% (of GDP) (2017 est.)
GDP - composition, by end usehousehold consumption: 59.5% (2017 est.)

government consumption: 16.3% (2017 est.)

investment in fixed capital: 25.3% (2017 est.)

investment in inventories: 3% (2017 est.)

exports of goods and services: 19% (2017 est.)

imports of goods and services: -20% (2017 est.)
household consumption: 85.4% (2017 est.)

government consumption: 18.9% (2017 est.)

investment in fixed capital: 33.2% (2017 est.)

investment in inventories: 1.8% (2017 est.)

exports of goods and services: 39.7% (2017 est.)

imports of goods and services: -79% (2017 est.)
Gross national saving40.1% of GDP (2019 est.)

41.3% of GDP (2018 est.)

36.3% of GDP (2017 est.)
19.5% of GDP (2019 est.)

26.6% of GDP (2018 est.)

26.7% of GDP (2017 est.)

Source: CIA Factbook