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Memo Provided By: Globaledge.Msu.Edu and EXPORT.GOV Uzbekistan

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Memo Provided By: Globaledge.Msu.Edu and EXPORT.GOV Uzbekistan Uzbekistan Introduction Key Economic Facts Risk Assessment (Provided by Coface) Uzbekistan is a doubly landlocked country located in Central Income Level (by per capita Lower Middle Income Country rating: B - Political and economic uncertainties Asia that borders the countries of Afghanistan, Kazakhstan, GNI): and an occasionally difficult business environment can Kyrgyzstan, Tajikistan, and Turkmenistan. Uzbekistan has a Level of Development: In Transition affect corporate payment behavior. Corporate default varied landscape that includes a rolling GDP, PPP (current international $245.42 billion (2019) sandy desert, mountains along the border $): probability is appreciable. with Tajikistan, and the Aral Sea in the GDP growth (annual %): 5.56% (2019) Business Climate rating: B - The business environment is west. The government system is a GDP per capita, PPP (current $7,308.42 (2019) mediocre. The availability and the reliability of corporate republic under authoritarian presidential international $): financial information vary widely. Debt collection can rule, with little power outside the executive branch; the chief External debt stocks, total $21,745,148,303.80 (2019) sometimes be difficult. The institutional framework has a few of state is the president, and the head of government is the (DOD, current US$): prime minister. Uzbekistan has a mixed economy in which Manufacturing, value added (% 19.57% (2019) troublesome weaknesses. Intercompany transactions run there is limited private freedom, of GDP): appreciable risks in the unstable, largely inefficient but the economy remains highly Current account balance (BoP, -$3.36 billion (2019) environments rated B. current US$): controlled by the government. Strengths Labor force, total: 15,766,496 (2020) Unemployment, total (% of 6.08% (2020) • More resilient economy than the rest of Central Asia total labor force) (modeled ILO (more diversified, less sensitive to external shocks) estimate): • Abundant natural resources (gas, gold, copper, Imports of goods and services $24.22 billion (2019) (current US$): hydroelectric potential) Location: Central Asia Exports of goods and services $18.07 billion (2019) • Young population (50% under the age of 30) Capital City: Tashkent (+5 GMT) (current US$): • International financial support, net credit position of Chief of State: Interim President Shavkat Mirziyoyev the State Head of Govt.: Prime Minister Abdulla Aripov • Economic reforms (liberalization, privatization, Currency: Uzbekistan Som (UZS) GDP Composition % Agriculture Services Industry Manufacturing diversification), credit development (42% of GDP, Major Languages: <p>Uzbek (official) 74.3%, Russian 14.2%, Tajik 4.4%, other 7.1%</p> 30% to the private sector), and public investments Primary Religions: <p>Muslim 88% (mostly Sunni), (electricity, transport, health) encouraging FDI 26 32 33 Eastern Orthodox 9%, other 3%</p> 20 • Increasingly dynamic bilateral relations and Calling Code: 998 negotiations to conclude preferential trade Voltage: 220 *Although Manufacturing is included in the Industry figures, it is also separately reported because it plays a critical role in economy. agreements with key partners (Turkey, Singapore, Rankings Key Websites South Korea, etc.) and an Enhanced Partnership and Index Rank Cooperation Agreement with the European Union Main Government Page: gov.uz Corruption Perceptions Index 153 / 180 (EU) Commerce Ministry: mineconomy.uz Index of Economic Freedom 139 / 179 • Negotiation process to join the World Trade International Logistics Performance Index (LPI) 99 / 160 Inward FDI Potential Index 95 / 139 Organisation (WTO) and an observer member of the KOF Index of Globalization 164 / 185 Eurasian Economic Union (EAEU) since 2020 • Improved relations with Central Asian countries, good diplomatic relations, and strategic position between Europe, Russia, and China Weaknesses • Strong dependence on Russia and China (leading trading partners, recipients of 80% of gas exports) • Dependence on commodities, climate conditions for agriculture (28% of GDP) and expatriate remittances (15% of GDP) Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV Uzbekistan • Manufacturing activity still limited (16% of GDP) • Market structures still weakly competitive (highly concentrated in key sectors) and, although on the rise, low share of the private sector in the economy (50% of GDP) • High unemployment, low living standards, large rural population and still widespread informality (58% of employment) • Slow institutional progress (corruption, weakness of parliament, lack of real opposition) that constrains the business environment U.S. Embassy U.S. Embassy Tashkent 3 Moyqorghon Street 5th Block, Yunusobod District, 100093 Tashkent Phone: (+99871) 120-5450 https://uz.usembassy.gov Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV.
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