Uzbekistan's current account deficit expands to US$5.8 billion in Q1

Tashkent, Uzbekistan (UzDaily.uz) — The current account deficit of Uzbekistan reached US$5.79 billion in the first quarter of 2026, compared to US$304 million during the same period last year. The figures were released in the Central Bank's comprehensive review of the country's balance of payments, international investment position, and external debt.

The Central Bank noted that despite ongoing geopolitical tensions and high uncertainty in the global economy, positive trends persisted in Uzbekistan's external sector. In particular, the growth of non-gold merchandise exports and services continued, international remittances increased, and international reserves expanded, which helped strengthen the country's net international investment position.

The primary driver behind the sharp widening of the deficit was an expansion of the negative trade balance, which grew from US$2.7 billion to US$8.3 billion.

Total exports for January–March decreased to US$5.6 billion. Goods exports dropped from US$6.2 billion to US$3.4 billion, primarily due to a suspension of gold sales. Concurrently, non-monetary gold merchandise exports rose by 29%, while services exports grew by 18% to reach US$2.17 billion.

Conversely, imports climbed by 29% to US$13.9 billion, fueled by sustained investment activity and robust domestic demand. Goods imports went up by 33% to US$10.2 billion, while services imports increased by 19% to US$3.7 billion. The most significant import growth was recorded in machinery and equipment, vehicles, chemical and mineral products, and food commodities.

The negative foreign trade balance and a US$43 million deficit in primary income were partially offset by net inflows in secondary income, which totaled US$2.5 billion. Total inflows under this category reached US$2.9 billion.

According to the regulator, the current account deficit was financed primarily through direct and other investments. Net inflows of foreign direct investment (FDI) stood at US$702 million, while portfolio investments brought in US$4.1 million. The "other investments" category recorded a net inflow of approximately US$1.1 billion, driven by currency and deposit operations, trade credits, and external borrowing by the public sector, commercial banks, and other economic industries.

By the end of the first quarter, the negative financial account balance stood at US$4.9 billion. The foreign exchange component of international reserves decreased by US$3.1 billion; however, driven by rising global gold prices, the aggregate volume of international reserves increased by nearly US$2.7 billion, reaching US$69 billion as of 1 April 2026.

The country's net international investment position strengthened by 10% during the quarter to US$21.6 billion. External assets of residents grew by US$2.6 billion to US$131.08 billion, while external liabilities rose by US$534 million to US$109.49 billion.

Uzbekistan's total external debt remained steady compared to the beginning of the year, standing at US$82.2 billion as of 1 April. Out of this total, public external debt accounted for US$40.5 billion, while corporate external debt amounted to US$41.7 billion.

The Central Bank emphasized that corporate external borrowings are secured by the private sector without state guarantees and are serviced entirely by the independent funds of companies and commercial banks. According to evaluations by the International Monetary Fund (IMF), Uzbekistan's external debt burden remains moderate, as a significant portion of its external liabilities was obtained on concessional terms.