FACT SHEET: Uzbekistan

 

 

1. GENERAL PROFILE

 

A. POPULATION

            26.2 million

Growth Rate: 1.6%

Ethnic make up: Uzbek 80%, Russian 5.5%, Tajik 5%, Kazakh 3%

B. RELIGION(S)

            Muslim 88%, Eastern Orthodox 9%, Other 3%

C. GOVERNMENT

            Republic

            Head of State: Islam Karimov, President

            Head of Government: Shavkat Mirziyaev

D. LANGUAGE(S)

            Uzbek 75%, Russian 14%, Tajik 5%, Other 6%

E. NEXT SCHEDULED ELECTIONS      

            Presidential:  January, 2007

Parliamentary:  December, 2009

F. CURRENCY

            Uzbekistani sum

 

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

 

 

COMMERCIAL 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