In today’s global landscape, finding new markets is crucial, especially with ongoing trade restrictions. This effort is vital for boosting population income, creating jobs, and increasing production. The free market also drives product quality improvements, cost reductions, technological advancements, market reforms, and integration into the global production system.
Current Trade Landscape
As of the first half of this year, Uzbekistan has established trade relations with 186 countries, achieving a foreign trade turnover of $31.8 billion.
Exports alone accounted for $13 billion, marking a 5.5% increase from the previous year. China leads as Uzbekistan’s top export destination with an 18.5% share, followed by Russia, Kazakhstan, Turkey, and Korea.
Rising Exporters
The number of Uzbek exporters has reached 5,682, with goods and services worth about $8.7 billion exported in the last six months, excluding non-monetary gold. This figure represents a 10.9% increase from the same period in 2023.
The largest share of foreign trade in the first half of 2024 was with CIS countries ($11 billion), EOII countries ($8.4 billion), other countries ($20.9 billion), and EU countries ($3.1 billion).
Vision 2030: A Strategic Outlook
The “Uzbekistan–2030” strategy outlines key tasks to enhance the national economy’s export potential and increase the share of high-value products. The plan aims to double exports to $45 billion, increase the number of exporting enterprises from 6,500 to 15,000, and boost the volume of finished and semi-finished products by 3.3 times. Additionally, the export of finished and technological products to European countries under GSP+ and other systems will be expanded.
The number of enterprises meeting international standards will increase tenfold to 5,000. Special economic zones will be established with 50 prestigious global brands, and national brands will be supported in foreign markets under the “New Uzbekistan–the country of competitive products” initiative.
Support for Local Enterprises
A list of 1,426 enterprises has been formed to help local businesses enter foreign markets. In 2023, 132 of these enterprises received natural gas and electricity, 103 were introduced to international standards and certificates, 10 received $4.8 million in export financing loans, and 9.2 billion soums were allocated to enhance product competitiveness. As a result, 183 enterprises found foreign partners and exported a total of $130 million.
Additionally, 2,185 enterprises were involved in export activities, exporting $735 million.
Future Projections
By the end of 2023, Uzbekistan’s exports (excluding special exports) are projected to reach
$16.2 billion, a 104% increase from the previous year. This growth reflects the country’s strategic efforts to expand its export markets and integrate more deeply into the global economy.
Uzbekistan’s Export Boom: Key Drivers and Future
Prospects
Uzbekistan’s export volumes have surged, driven by significant growth in several key sectors.
Electrical engineering exports hit $1 billion, up 26%, while the automobile industry saw $682 million in exports, a 23% increase. The oil and gas sector contributed $509 million (10% growth), pharmaceuticals $130 million (95% growth), transport $1.6 billion (8% growth), tourism $2.1 billion (32% growth), and information technology $487 million (73% growth).
Regional Highlights
Tashkent city and the Khorezm region led the way in export growth. Tashkent’s export
volume reached $1.9 billion, a 9% increase, while Khorezm achieved $340 million, up 24%.
Semi-Finished Products and Services
Exports of semi-finished products soared to $1.479 billion, a 117% increase, raising their
share in the export structure from 8.9% to 9.9%. Notable contributions came from copper and copper products ($288 million, 117% growth), flour products ($376 million, 131% growth), metal products ($158 million, 124% growth), and oil products ($142 million, a 3.4-fold increase).
Services exports also saw a significant rise, reaching $4.823 billion, a 119% increase. The
share of services in total exports grew from 28% to 32% compared to the previous year.
Strategic Goals and Raw Materials
The strategic focus on high-value products has led to a reduction in raw material exports, which amounted to nearly $3 billion, 79% of the previous year’s figure. The share of raw materials in the export structure decreased from 27% to 20%.
GSP+ System and Future Plans
Uzbekistan’s use of the “GSP+” system, which allows for the preferential supply of 6,200 types of goods to the European Union, has been extended until the end of 2027. In 2023, 1,351 enterprises benefited from this system, receiving support in standards, metrology, certification, quality management, packaging, labeling, and consulting services. In 2024, practical assistance will be extended to 2,000 enterprises, with international
standards introduced to 822 of them. This initiative aims to double the export of local products to European markets, reaching $1 billion.
Exporter Registration System (REX)
Goods exported to European markets are now registered in the Exporter Registration System (REX) in accordance with EU regulations. This system allows for the declaration of origin on invoices without issuing certificates, with EU customs authorities providing preferences electronically. Currently, 1,022 Uzbek exporters are registered in the REX system to receive benefits under “GSP+”.
Uzbekistan’s strategic efforts and reforms are clearly paying off, positioning the country for
continued growth and deeper integration into the global economy.