Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan is developing a more balanced industrial model of participation in global value chains than other Central Asian countries, increasing imports of technology and components to support automotive manufacturing, engineering and advanced processing. These findings are presented in a working paper by economists at the Eurasian Fund for Stabilization and Development (EFSD) examining Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan’s participation in global value chains, the fund said.
According to the authors’ calculations, Uzbekistan’s intermediate exports — goods subsequently processed in other countries — amounted to 13.1% of GDP in 2024. Final exports accounted for 4.5% of GDP, a ratio of approximately three to one. Between 2022 and 2024, the domestic value added embodied in intermediate exports rose from 11.5% to 13.1% of GDP. Uzbekistan’s overall global value chain participation index reached 55.8% in 2024, compared with 55.6% in 2022, while its backward participation index, reflecting the use of imported components, stood at 24%.
The EFSD economists estimate that Uzbekistan recorded the region’s most pronounced upward movement along value chains between 2022 and 2024. While the average length of production chains remained unchanged, the distance between Uzbek exports and final consumers increased from 2.76 to 2.97. The authors believe that products such as textiles and goods manufactured by industrial clusters are becoming more sophisticated intermediate inputs for global production. According to the report, 86% of domestic value added in Uzbekistan’s exports comes from industries with relatively long production chains.
Automotive manufacturing has the longest production chain among Uzbekistan’s industries, at 2.89, while its foreign component stands at 1.20. The report views this as evidence of the automotive sector’s deep integration into global production networks. In metallurgy, the production chain length is 2.07 and the foreign technology component is 0.73, which the authors associate with the use of imported equipment for smelting and rolling.
The authors identify Uzbekistan’s textile and automotive clusters as a positive exception in the region, saying policies promoting processing have helped lengthen domestic production chains. Whereas domestic value added in textiles previously centred on cotton cleaning, it now also includes spinning, weaving, design and branding. Buyers of Uzbek textile products include Inditex, H&M, LC Waikiki, The North Face and Kiabi. The authors also note that Uzbekistan’s relatively large domestic market provides a natural foundation for the development of complex industrial clusters.
Switzerland remains the largest destination for Uzbek value added, accounting for US$1.71 billion, or 17.9%. The authors attribute this to Switzerland’s role as a gold-refining centre. According to the EFSD, Uzbekistan remains a major supplier of natural gas and gold. China follows with 7.5%, while Türkiye accounts for 4.7%.
Imported value added comes mainly from Russia, at US$2.25 billion, or 29.9%, and China, at US$1.64 billion, or 21.7%.
Economic links with neighbouring countries remain weak. Of the US$9.7 billion in Uzbek value added incorporated into other countries’ exports, only US$132.8 million is embodied in Kazakhstan’s exports. At the same time, Uzbekistan is the largest regional recipient of Kazakh value added, accounting for US$579.7 million of the US$766 million supplied to neighbouring Central Asian countries. The combined contribution of five key Kazakh industries to Uzbekistan’s metallurgy sector exceeds US$325 million.
By comparison, Kazakhstan remains a major supplier of oil, ores and metals, according to the authors. Kyrgyzstan is heavily dependent on imported components and serves as a transit and logistics hub, while Tajikistan remains near the beginning of production chains as a raw material supplier. Overall, the region continues to export predominantly raw materials, with most technology-related rents accruing to countries that process them.
The authors recommend deepening economic cooperation within Central Asia, gradually shifting from raw material exports to products with higher levels of processing, attracting foreign direct investment tied to local processing and technology transfer, and reducing transaction costs in regional trade.
The calculations are based on the Asian Development Bank’s inter-country input-output tables.
