Uzbekistan Economy Profile 2008

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. 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 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), 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 (purchasing power parity)

$62.27 billion (2007 est.)

GDP (official exchange rate)

$20.18 billion (2007 est.)

GDP - real growth rate

8.1% (2007 est.)

GDP - per capita (PPP)

$2,200 (2007 est.)

GDP - composition by sector

agriculture: 27.3%
industry: 30.3%
services: 42.4% (2007 est.)

Population below poverty line

33% (2004 est.)

Household income or consumption by percentage share

lowest 10%: 2.8%
highest 10%: 29.6% (2003)

Inflation rate (consumer prices)

16% officially, but 38% based on analysis of consumer prices (2007 est.)

Labor force

14.6 million (2007 est.)

Labor force - by occupation

agriculture: 44%
industry: 20%
services: 36% (1995)

Unemployment rate

0.8% officially by the Ministry of Labor, plus another 20% underemployed (2007 est.)

Distribution of family income - Gini index

36.8 (2003)

Budget

revenues: $6.584 billion
expenditures: $6.652 billion (2007 est.)

Public debt

24.1% of GDP (2007 est.)

Industries

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

Industrial production growth rate

12% (2007 est.)

Electricity - production

49 billion kWh (2006 est.)

Electricity - consumption

47 billion kWh (2006 est.)

Electricity - exports

6.8 billion kWh (2006)

Electricity - imports

10.5 billion kWh (2006 est.)

Oil - production

124,900 bbl/day (2005)

Oil - consumption

155,000 bbl/day (2005)

Oil - imports

11,230 bbl/day (2004)

Oil - exports

6,941 bbl/day (2004)

Oil - proved reserves

594 million bbl (1 January 2006 est.)

Natural gas - production

62.5 billion cu m (2006 est.)

Natural gas - consumption

48.4 billion cu m (2006 est.)

Natural gas - exports

12.5 billion cu m (2006 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

1.798 trillion cu m (1 January 2006 est.)

Current Account Balance

$3.045 billion (2007 est.)

Agriculture - products

cotton, vegetables, fruits, grain; livestock

Exports

$6.58 billion f.o.b. (2007 est.)

Exports - commodities

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

Exports - partners

Russia 23.7%, Poland 11.6%, China 10.4%, Turkey 7.6%, Kazakhstan 5.9%, Ukraine 4.7%, Bangladesh 4.3% (2006)

Imports

$4.57 billion f.o.b. (2007 est.)

Imports - commodities

machinery and equipment, foodstuffs, chemicals, ferrous and non-ferrous metals

Imports - partners

Russia 27.6%, South Korea 15.1%, China 10.3%, Germany 7.8%, Kazakhstan 7.2%, Ukraine 4.7%, Turkey 4.5% (2006)

Reserves of foreign exchange and gold

$5.6 billion (31 December 2007 est.)

Debt - external

$5.398 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$NA

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$36.89 million (2005)

Economic aid - recipient

$172.3 million from the US (2005)

Currency (code)

soum (UZS)

Exchange rates

Uzbekistani soum per US dollar - 1,263.8 (2007), 1,219.8 (2006), 1,020 (2005), 971.265 (2004), 771.029 (2003)

Fiscal year

calendar year