FACT SHEET: Uzbekistan
A. POPULATION
26.2
million
Growth
Rate: 1.6%
Ethnic
make up: Uzbek 80%, Russian 5.5%, Tajik 5%, Kazakh 3%
B. RELIGION(S)
C. GOVERNMENT
Head of Government:
Shavkat Mirziyaev
D. LANGUAGE(S)
E. NEXT SCHEDULED ELECTIONS
Presidential: January, 2007
Parliamentary:
December, 2009
F. CURRENCY
2. ECONOMY
Economy
|
2001 |
2002 |
2003 |
2004 |
2005 |
A. GDP
($ billion) |
11.6 |
8.2 |
10.1 |
12 |
12.8 |
B. GDP Growth Rate |
4.2% |
4.2% |
4.2% |
7.7% |
7% |
C. GDP Per Capita ($) |
306 |
330 |
323 |
401 |
471 |
D. Consumer Price Index |
26.5% |
21.6% |
3.8% |
3.7% |
7.8% |
E. Unemployment (official)* |
0.4% |
0.4% |
0.3% |
0.4 |
0.7 |
F. International Reserves ($
billion) |
1.212 |
1.215 |
1.659 |
2.147 |
2.4 |
G. Average Exchange Rate (sums per
US dollar) |
423 |
771 |
971.3 |
1019.2 |
1180 |
H. Gross External Debt ($ billion) |
4.28 |
4.26 |
4.149 |
3.884 |
3.642 |
I. Industrial Output (% change) |
7.6 |
7.6 |
6.2 |
|
7.3% |
J. Total Exports ($ billion) |
2.74 |
2.51 |
3.775 |
4.837 |
5.409 |
K. Total Imports ($ billion) |
2.55 |
2.19 |
3.096 |
3.949 |
4.091 |
L. Trade Balance ($ billion) |
.19 |
.32 |
.679 |
.888 |
1.3 |
D. Current Account Balance as
Percentage of GDP |
-1 |
2.3 |
8.7 |
10.1 |
7.8 |
Trade with the US (US$ million) |
2000 |
2001 |
2002 |
2003
|
2004 |
2005 |
A. U.S.
Exports |
157.741 |
144.855 |
137.940 |
256.8 |
229.7 |
73.6 |
B. U.S.
Imports |
41.168 |
53.527 |
76.977 |
83.8 |
88 |
95.6 |
C. Trade
Balance |
116.573 |
91.328 |
60.962 |
173 |
141.7 |
-22 |
3. FOREIGN DIRECT INVESTMENT
|
2001 |
2002 |
2003 |
2004 |
2005 |
FDI (net) |
76 |
75 |
70 |
180 |
250 |
4. OTHER INFORMATION
Uzbekistan is the most
populous country in Central Asia, abundant in resources, and with a strong
agricultural base. This 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 the world's second-largest
cotton exporter, and sixth largest producer. Other major export earners include
gold and gas. Uzbekistan responded to the negative external conditions
generated by the Asian and Russian financial crises by emphasizing import
substitution industrialization and by tightening export and currency controls
within its already largely closed economy. In 2003, the government accepted the
obligations of Article VIII under the International Monetary Fund (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.
Potential investment by Russia, Korea, and China in Uzbekistan's gas and oil
industry could increase economic growth prospects.
The privatization of small
size enterprises became a priority for the government of Uzbekistan early on
after independence, and by the end of 1996 had been nearly completed. The first wave of privatization, however,
did not lead to the next logical step –privatization of large-scale state owned
enterprises. An ensuing 1996 mass
privatization failed to pass controlling stakes in major industrial companies
to private ownership. Most of the
corporatized firms have been partially privatized by the sale of shares to
managers and employees. In almost all of the partially privatized firms the
government retains just over 25% shareholding, which allows it to exercise
control over decisions made by the enterprise through state trustees.
According to ADB, the large
and growing informal economy is explained by the high costs of doing business
in the official economy. The private sector’s perspective on the business
environment is that it is improving but key processes remain problematic. IFC
surveys of business environment in Uzbekistan identify the severity of
impediments for doing business for SME s in the following order: (i) tax
legislation unstable, (ii) access to cash problematic, (iii) private sector
participants under increased pressure from public prosecutor, and (iv) regulatory
restrictions relating to export–import operations onerous. The share of the
2003 survey respondents stating that they have not been investing in fixed
assets is double the 2001 figure. A fifth of the survey respondents admitted to
transferring a portion of their operational resources to the “shadow” economy
because of business conditions.
Some other major obstacles to business are
barriers posed by industry associations, inflexibility with respect to
valuation and pricing of the transactions, unclear property rights, difficulty
of enforcing contracts, and the lack of a clear, transparent legal and
regulatory framework for some of the infrastructure and public utilities
sectors. In an attempt to tackle some
of these problems the Government is initiating structural changes in the energy
sector as tariffs have been liberalized.
Top U.S. Subsidiaries in
Uzbekistan: Newmont Mining, Dunavant,
Texaco, Proctor and Gamble, Case, AIG (American Insurance Group)
(Sources: Asian Development
Bank, World Bank, EBRD, Economist Intelligence Unit, US Census Bureau)
Last Updated:
04/06