Currency rates from 19/05/2025
$1 – 12917.10
UZS – -0.37%
€1 – 14460.69
UZS – -0.44%
₽1 – 160.14
UZS – -0.74%
Search
Economy 17/04/2025 Hoover–Balassa specialization coefficient: Development and specialization of the services sector in urban areas

Hoover–Balassa specialization coefficient: Development and specialization of the services sector in urban areas

Tashkent, Uzbekistan (UzDaily.com) — Experts from the Institute for Macroeconomic and Regional Studies under the Cabinet of Ministers of the Republic of Uzbekistan (IMRS) have analyzed the development and specialization of the services sector in cities across the country for the period from January to December 2024.

Uzbekistan has 32 cities subordinated to the republic and the regions, home to around 24% of the country’s permanent population (8.7 million people). Despite this, these cities play a major role in the national services sector. From January to December 2024, these cities accounted for:

80.9% of educational services (down from 83.7% in 2023),

80.3% of telecommunications and IT services (up from 76.1%),

67.1% of healthcare services (down from 71.8%),

54.5% of trade services (down from 58.0% in 2023),

33.9% of transport services (up from 33.3% in 2023).

In 2024, the total value of services provided in Uzbekistan reached 818.1 trillion soums, amounting to 112.9% compared to the same period of the previous year. The sector’s share in the gross value added of all industries increased from 46.2% to 47.4%.

Over the 12 months of 2024, the highest growth rates in the services sector were recorded in the cities of Kattakurgan (125.4%), Yangiyer (118.7%), and Namangan (117.2%). The lowest growth was seen in Shakhrisabz (110.9%), Kagan (110.1%), and Nukus (108.4%).

The per capita volume of services was highest in Tashkent (97.1 million soums), Urgench (40.5 million soums), and Navoi (36.1 million soums). The lowest figures were registered in Shakhrisabz (7.7 million soums), Shirin (5.2 million soums), and Gozgon (4.5 million soums).

The study developed a ranking of city specialization in the services sector using the Hoover–Balassa coefficient. A value greater than 1 indicates a high degree of specialization; a value below 1, a low degree.

The results showed that the highest specialization in education was observed in Bukhara (4.02), Shakhrisabz (3.68), and Karshi (3.27); in healthcare — in Yangiyer (2.33), Chirchik (1.88), and Gulistan (1.83); in trade — in Bekabad (2.35), Yangiyul (2.34), and Kuvasay (2.25); in transport — in Kagan (1.93), Khanabad (1.88), and Kattakurgan (1.63); in telecommunications and IT — in Tashkent (1.98), Gulistan, and Gozgon (1.03).

Today, the services sector is a priority area in Uzbekistan’s economy. To maintain growth momentum in the future, it is necessary to develop service infrastructure in the regions, expand access to innovative and digital services, and focus on training qualified personnel.

Stay up to date with the latest news
Subscribe to our telegram channel