Uzbekistan's economy grows steadily in early 2025

The government of Uzbekistan forecasts a 6% growth in the country’s gross domestic product (GDP) in 2025. Industrial output is expected to rise by 6.1%, agriculture by 4.1%, and the services sector by 14.5%. January, as the first month of the year, has laid a solid foundation for economic development, offering insight into the year’s prospects.

A Strong Start to the Year

According to the Center for Economic Research and Reforms, the Business Activity Index in January 2025 increased by 8.4% compared to the previous month and by 18.6% year-on-year. Lending to the economy, trade, and exports remained stable, supporting consumer activity. The volume of outstanding credit deposits grew by 14.8%, while retail trade turnover increased by 1.1%.

The number of newly established enterprises rose by 9.2%, while registered businesses increased by 19.1%. The total number of active legal entities reached 527,000, marking a 1.3% rise since the beginning of the year.

Industrial Growth and Small Business Expansion

In January, industrial output amounted to 55.8 trillion soums, a 4.3% increase compared to the same period last year. The manufacturing sector, which accounts for 79% of total industrial production, grew by 5.2%, while the mining sector recorded a modest 2.3% rise, reflecting the dynamic expansion of high-value-added industries.

Small businesses also demonstrated robust activity, with the output of industrial products from small enterprises increasing by 24%. In the furniture industry, the share of small businesses grew from 38% to 57%, while in equipment manufacturing, it increased from 53% to 63%.

Regional Performance

The highest industrial growth rates were recorded in Namangan (10.8%), Khorezm (10.7%), Navoi (10.3%), and Tashkent (10.2%) regions. These regions play a vital role in Uzbekistan’s economy, contributing significantly to the country’s industrial output.

Energy and Green Economy

In January, Uzbekistan generated 7.5 billion kWh of electricity. Special attention was given to green energy, with electricity production from renewable sources increasing 1.9 times, bringing its share in total electricity output to 14%.

Services Market

The services sector reached a volume of 64.8 trillion soums in January, marking an 11.4% year-on-year increase. The main contributors to growth were financial services (2.5%), accommodation and food services (1.9%), and transport (1.8%).

Foreign Trade

Uzbekistan’s foreign trade turnover grew by 7.1% to $4.5 billion. Exports increased by 14.1%, reaching $1.3 billion, driven by a surge in food product exports (23.1%) and chemical product exports (22.6%). The export of services, particularly in the IT sector, rose by 22%.

Conclusion

Uzbekistan’s economy continues to demonstrate resilience and stable growth despite global challenges. Ongoing reforms and proactive measures have ensured sustained development based on market-driven mechanisms. These factors provide confidence that the country’s 2025 economic targets will be achieved.

Uzbekistan is strengthening its position in the region, showcasing high growth rates and resilience to external challenges.

All information is taken from the website www.uzdaily.uz