EDB Highlights Economic Growth and Investment Surge in Uzbekistan

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan's economy continues to demonstrate strong performance, with GDP expanding by 7.7% in 2025 and economic activity accelerating to 8.5% in the first half of 2026, according to an analytical report by the Eurasian Development Bank (EDB) released for the 35th anniversary of Uzbekistan's independence.

The bank noted that the country's 2025 growth rate was among the highest over the past decade and more than doubled the global average of 3.4%. Consumer demand, investment, and expansion in the service sector served as the primary growth drivers. In the first six months of 2026, retail trade increased by 20.2%, fixed capital investment rose by 17.5%, and market services grew by 16.9%. Real incomes rose by 9.2%, outstripping overall GDP expansion.

Inflation in Uzbekistan reached a historic low of 5.5% in May 2026 and is expected to move toward the Central Bank's 5% target, aided by monetary policy measures. Industrial production grew by 8% in the first half of 2026, with manufacturing accounting for 86.3% of total industrial output. Under the national industrial development program, 782 industrial and infrastructure projects are scheduled for launch in 2026.

Foreign direct investment (FDI) from Eurasia and Asia reached US$39.6 billion, expanding more than 2.5 times over the past five years. China remains the largest investor, increasing its stock fivefold to US$11.5 billion, while Gulf countries expanded their investments more than 20-fold to US$9.8 billion. Russia represents the second-largest investor with approximately US$10 billion in accumulated FDI at the end of 2025. Türkiye and the Republic of Korea also stand among the top sources of capital.

The structure of foreign investment shifted significantly toward the power sector, which grew from 2% of total accumulated foreign investment in 2020 to 42%, or US$16.6 billion, by 2025, driven by renewable energy projects.

International financial institutions approved US$26.6 billion in investments over the past five years, including US$7.6 billion in non-sovereign financing without state guarantees. Non-sovereign operations increased 12-fold over the past 15 years, rising from an average of US$100 million annually in 2008–2010 to US$1.5 billion annually in 2023–2025. In the first half of 2026 alone, international lenders approved more than US$700 million in non-sovereign funding.

Uzbekistan joined the Eurasian Development Bank in 2025. As of late June 2026, the bank's total portfolio comprised 348 projects worth US$22.1 billion, focused on transport, digital systems, green energy, agriculture, and industry. Under its 2022–2026 strategy, the EDB is implementing three major initiatives: the Central Asian Water and Energy Complex, the Eurasian Transport Framework, and the Eurasian Trade Network.