IPMI experts analyzed the development of services in the regions of Uzbekistan in 2022

Tashkent, Uzbekistan (UzDaily.com) – Experts of the Institute for Forecasting and Macroeconomic Research (IPMI) analyzed the development of services in the regions of Uzbekistan in 2022.

At the end of 2022, the service sector was characterized by relatively dynamic development: due to communication and informatization services, education, accommodation and food, rent and rental, transport and financial services (growth rates were 12-29.5%) increase in services amounted to 15.9%.

The regions with outstripping growth of services, along with the city of Tashkent, where high real incomes of the population contribute to the expansion of this industry, include Namangan, Bukhara, Jizzakh regions and the Republic of Karakalpakstan. In these territories, as well as in the whole country, the demand for financial services, communications and informatization turned out to be predominantly high.

Moderate growth of services in Andijan, Syrdarya regions (12.5-13.0%) is due to the restraining development of trade and transport services, which are the main activities of the regions (the share in the total volume of services in the region is 50.6% and 38.2%, respectively).

What are the structural changes in the services of the regions of the country?

- firstly, the increase in the share of services in the GRP of 10 regions was ensured (the share of services in GDP increased from 39.6% in 2021 to 41.5% in 2022);

The share of services in Russia’s GDP is 68%, Kazakhstan - 64%, Belarus -59%, South Korea - 60%, developed countries - 74%.

- reduction of inter-regional differentiation (excluding Tashkent city) from 2 times to 1.9 times.

In 8 regions, the contribution to the total volume of services rendered in the country increased (excluding Tashkent city).

What is the level of development of services in the regions?

- The city of Tashkent with an index of services per capita of 47.2 million soums is the leading region;

- despite a significant gap in the indicator of services per capita between the regions and the capital, services can be considered relatively developed in Navoi, Tashkent and Bukhara regions (7.9-10 million soums);

- production of services per capita in most regions (7 regions) of the country is 5.0-6.0 million soums.

In general, the reforms carried out in the development of the service sector, on the one hand, are the most important factor in increasing employment, including self-employment, and the monetary income of the population, and, on the other hand, are becoming a potential driver for the growth of the country’s regional economy.