Tashkent, Uzbekistan (UzDaily.com) — On 12 June 2025, a panel session titled “Market Economic Reforms in Uzbekistan” was held in Geneva, Switzerland, as part of the 10th meeting of the Working Party on Uzbekistan’s accession to the World Trade Organization (WTO). The event was organized with the support of the WTO, the World Bank, and the International Monetary Fund (IMF).

The main objective of the session was to present Uzbekistan’s key market reform strategies, discuss the challenges and opportunities related to WTO accession, and assess progress in improving the investment climate and macroeconomic indicators.

Obid Khakimov, Director of the Center for Economic Research and Reforms (CERR), delivered a keynote presentation outlining the results of Uzbekistan’s socioeconomic reforms from 2017 to 2024.

International experts praised the Uzbek government’s strong commitment to reforms, noting their substantial impact on the country’s economic development in recent years.

Khakimov emphasized that between 2017 and 2024, Uzbekistan achieved notable progress in macroeconomic stability. Per capita GDP rose from $1,781 to $3,092, unemployment dropped from 9.3% to 5.8%, and real aggregate household incomes increased by 83%. Despite external shocks, inflation has been kept at 9.8%, below the Central Asian average of 16.7%.

He noted that capital investment grew 2.8 times, reaching $39 billion. These funds were directed toward the modernization of infrastructure, energy, industry, and logistics. A major focus was also placed on combating the shadow economy — the introduction of digital cash registers, e-invoicing, and risk-based tax monitoring helped reduce its share from 45.1% to 34.8%.

As part of efforts to strengthen the role of the private sector, Uzbekistan aims to increase its share in GDP to 85% by 2030 through privatization, the development of public-private partnerships (PPP), improved market competition, and greater investment appeal.

The session also highlighted significant structural shifts in the economy. The manufacturing sector’s share of GDP grew from 14% to 20%, and total industrial output more than doubled — from $28 billion to $62 billion. These gains were made possible by modernizing production capacities, actively supporting exports, and attracting foreign direct investment into industrial projects.

Particular attention was drawn to Uzbekistan’s rising position in international indices. In the Harvard Growth Lab's Economic Complexity Index, the country climbed 28 positions in five years, ranking 70th out of 145 countries.

Khakimov explained that this index measures the diversity and technological sophistication of a country’s exports. Uzbekistan’s upward trajectory reflects success in economic diversification, expansion of non-resource exports, and the development of new product niches — all crucial for long-term economic growth and a shift away from dependence on raw materials.

Uzbekistan’s exports have been growing at a steady pace of 13.4% annually, with non-oil exports increasing even faster — by 17% per year, outpacing global averages. Over the past 15 years, the country has added 68 new export products worth $2.1 billion, accounting for 8% of total exports — a clear sign of gradual diversification.

Significantly, 162 of Uzbekistan’s export products hold comparative advantages on the global market, signaling their competitiveness.

In terms of production diversification, Uzbekistan now ranks 46th out of 145 countries — ahead of many regional peers — demonstrating its capacity to produce a wide range of goods, including more technologically advanced items.

According to projections from the Harvard Growth Lab, Uzbekistan is expected to become the second-fastest-growing economy in the world through 2033, with an average annual GDP growth rate of 5.75%. This underscores that the country’s reform efforts, industrial policy, and export support measures are creating a solid foundation for sustained economic expansion.

Other international rankings were also noted: in the Heritage Foundation Index of Economic Freedom, Uzbekistan rose 14 positions to 100th place; in the UN e-Government Development Index, the country entered the group of nations with a very high level of digital governance. In the WIPO Global Innovation Index, Uzbekistan now ranks 4th in South and Central Asia.

Khakimov stressed that since 2017, Uzbekistan has pursued a comprehensive economic liberalization policy. Full convertibility of the national currency was established, the dual exchange rate was eliminated, and the average import tariff was reduced from 15.3% to 8%. Zero tariffs were introduced on 59 categories of food products, resulting in lower inflation and higher consumption. As a result, exports have increased 2.2 times.

Since 2021, Uzbekistan has benefited from the EU’s GSP+ trade regime, providing preferential access to European markets.

Investment in fixed capital has grown 2.7 times — from $14 billion to $39 billion — while foreign direct investment (FDI) has surged almost fivefold, from $2.4 billion to $11.9 billion.

Among the key reforms highlighted was the 2019 Investment Law, revised in 2024 to incorporate principles of responsible business conduct, national treatment, simplified land access (up to 49 years), and a preferential ownership threshold starting from 10%. More than 50 bilateral investment protection agreements and 54 double taxation avoidance treaties have been signed.

Additionally, an Investment Advisory Council under the President was established, along with the introduction of investment visas and residency permits for major investors. The number of special economic zones (SEZs) grew from 3 to 22, and the number of PPP projects reached 366, with a total value of $140 billion.

Reforms in the energy sector were also covered. Since 2017, electricity production has increased by 38%, and installed capacity rose by 79% to reach 24.4 GW. By 2024, Uzbekistan had built 14 solar and 3 wind power plants with a total capacity of 4.1 GW. By 2030, the goal is to reach 18 GW of renewable energy capacity.

Uzbekistan became the first country in the region to launch trade in green certificates and carbon credits. From 2017 to 2024, harmful emissions were reduced by 11%, with a target of 30% reduction by 2030 compared to 2010 levels.

Khakimov emphasized that Uzbekistan has set ambitious goals: to reach a GDP of $200 billion, increase exports to $45 billion, agricultural exports to $10 billion, and raise per capita GDP to $5,000. Achieving these targets will elevate the country to upper-middle-income status and enhance investor confidence.

Particular emphasis is placed on value-added growth — the share of finished products in exports is targeted to reach 50%.

Plans also include reducing import dependency by 50%, expanding PPPs, and attracting $30 billion in investment into infrastructure, energy efficiency, and the social sphere. Meanwhile, inflation and unemployment are expected to remain within the 5–6% range.

In conclusion, Khakimov stressed that the reforms carried out over the past eight years have laid a robust foundation for sustainable growth and integration into the global economy. Accession to the WTO is viewed as a strategic step to consolidate these achievements, enhance competitiveness, and ensure long-term economic resilience.

He also noted that, thanks to growing trust from global partners, increasing investment flows, and deepening diversification, Uzbekistan is confidently positioning itself as a new growth hub in the Central Asian region.