Tashkent, Uzbekistan (UzDaily.com) -- In January-June 2020, the foreign trade turnover (FTT) of Uzbekistan reached US$15.85 billion, which, compared to the same period of last year, decreased by US$3.53 billion, State Statistics Committee of Uzbekistan said.

Of the total volume of the FTT, exports made up US$6.28 billion (by January-June 2019, a decrease of 22.6% was noted), and imports - US$9.57 billion (a decrease of 15.0%). As a result, the foreign trade balance made up a passive balance of US$3.28 billion.

Today Uzbekistan carries out trade relations with more than 150 countries of the world. The largest volume of foreign trade turnover was recorded with China (18.1%), the Russian Federation (16.3%), Kazakhstan (8.4%), the Republic of Korea (7.1%), Turkey (5.6%), Kyrgyzstan (2.5%) and Germany (2.1%).

In January-June 2020, the volume of foreign trade turnover made up US$15.85 billion and, compared to the same period of 2019, decreased by 18.2%.

If in January and February the foreign trade turnover was recorded at the level of US$2.9 billion, then in March it marked a sharp decline to US$2.2 billion (compared with February, a decrease of 25.3%). During the same period, the largest decline was noted in May at US$2.16 billion. Compared to the same month of last year, the decrease in foreign trade turnover was US$1.15 billion.

The necessary resource base has been created in the republic to ensure stable and uninterrupted operation of enterprises and branches of the real economy. As a result of an increase in the production of products that replaced imported goods, and the diversification of industrial production, significant changes have been achieved in the structure of exports.

In addition, the strengthening of relations with neighboring states is noted, a lot of work is being done to develop relations in the socio-economic, commercial, industrial and cultural spheres with these countries. In particular, in recent years there have been significant changes in the FTT with neighboring states, such as Kazakhstan and Kyrgyzstan. The presence of an active foreign trade balance with Kyrgyzstan, Tajikistan and Afghanistan can be viewed as a positive result in the country’s foreign trade.

Among the 20 large partner countries in foreign economic activity, there is also an active foreign trade balance with five countries, in particular with such countries as Afghanistan (US$330.5 million), Kyrgyzstan (US$281.5 million), Tajikistan (US$141.7 million), France (US$14.4 million) and the UAE (US$8.1 million). The remaining 15 countries maintain a passive balance of foreign trade turnover.

One third of the FTT volume falls on the CIS countries and, in recent years, this indicator has changed slightly. Despite the measures taken to strengthen cooperation with the CIS countries and comprehensive support of foreign trade, the share of foreign trade turnover of the CIS countries, compared to the same period of 2019, decreased by 0.8%. For the same period of 2018, a decrease was noted by 3.8% and their share in foreign trade turnover, at the end of January-June 2020, made up 34.4%.

The volume of foreign trade turnover of other states in January-June 2020, compared to the same period in 2018-2019, accordingly increased and made up 65.6% of the total volume of foreign trade turnover.

In January-June of this year, the total number of exporting entities made up 4,573 units and this ensured the increase in the volume of exports, excluding special exports, to US$4.16 billion (a decrease, compared to the same period of 2019, was 31.0%). In the structure of exports, 83.9% are goods, which mainly accounted for industrial products (18.7%), food products and live animals (8.9%), chemicals and similar products (6.1%).

In January-June 2020, the volume of exports made up US$6.28 billion and, compared to the same period of last year, decreased by 18.2%. The dynamics of the export volume indicates that in the first quarter of 2020 its volume made up US$3.37 billion, in the second quarter this indicator decreased by US$464.0 million and made up US$2.91 billion. Compared to the first quarter of this year, a decrease fixed at 13.8%.

There is a difference in the direction of export of goods and services between the CIS countries and other foreign countries. Thus, 23.5% of exports to the CIS countries are primarily exported by services, followed by industrial goods and food products, as well as live animals and various finished products.

During the reporting period, the fastest growing was the export of beverages, tobacco, non-food raw materials (except for fuel), machinery and transport equipment, various finished products, as well as animal and vegetable oil to the CIS countries, a decrease was primarily noted in the export of mineral fuel, food and chemicals.

Analysis of the structure of exported goods and services in January-June 2020 sent to other countries showed that, compared to January-June 2019, the volume of exports, mineral fuels, lubricating oils and similar materials, non-food raw materials, food products and living animals as well as services declined.

Over the past three years, the volume of exports to the CIS countries has decreased and their share in its total volume has decreased from 35.0% to 30.5%. Accordingly, the share in the total export volume of other foreign countries increased from 65.0% to 69.5%.

Compared to January-June of 2018-2019, our main partners in the export of goods and services in foreign trade turnover in January-June 2020 were such countries as China (13.2% of total exports), the Russian Federation (10, 6%), Turkey (6.8%), Kazakhstan (6.6%), Kyrgyzstan (5.4%), Afghanistan (5.3%) and Tajikistan (2.9%). Their share in the total export volume reached 50.7%

In January-June 2020, among the seven large partner countries for the export of goods and services, as in the previous year, China retains its leading position. The next position is taken by the Russian Federation. Kazakhstan, slightly yielding in volume to Turkey, dropped from the third position to the fourth. The geography of partner countries for the export of goods and services, compared to the same period of 2019, decreased from 148 to 142 countries.

The largest volume of exported goods among large partner countries is made up of mineral fuels, lubricants and similar materials, industrial goods, as well as non-food raw materials, except for fuel.

The volume of exports of services in January-June 2020 made up US$1.01 billion, or 16.1% of the total volume of trade exports and decreased, compared to the same period of 2019, by 36.0%. Over the past three years, the share of services in total exports has increased due to growth.

The major share of the export of services is taken by transport services (65.7%), travel (tourism) (20.1%), telecommunications, computer and information services (7.5%).

At the same time, other services (6.7%) account for the largest share, respectively, for business (2.5%), construction (2.1%) and financial services (0.8%).

The fruit and vegetable sector in Uzbekistan is an important segment in ensuring the food security of the country and regions. Therefore, in this area, all sorts of measures are being taken to accelerate the development of the production of fruits and vegetables, which are yielding results.

Thus, the volume of exports of fruits and vegetables made up 720,400 tonnes and, in value terms, exceeded US$416.6 million (the rate of decline, compared to the same period of 2019, was 3.9% and 39.8%, respectively).

Of these, 523,900 tonnes of vegetables were exported for US$204.3 million, as well as 157,200 tonnes of fruits and berries for US$169.8 million (the rate of decline in value terms, compared to the same period of 2019 years, respectively made up 34.3% and 28.3%). The main export markets for fruits and vegetables are in Kazakhstan, Russia, Kyrgyzstan and Afghanistan.

Such branches of agriculture as horticulture, horticulture and viticulture developed at an accelerated pace. So, in January-June 2020, the share of fruits and vegetables in total exports made up 6.6%.

The potential of the sector of production, processing and export of fruit and vegetable products in Uzbekistan today is quite high, and this is due not only to the presence of favorable natural and climatic conditions, but also to the accumulation of experience by local producers.

In this regard, the government pays significant attention to deepening the industrial processing of agricultural raw materials and the development of storage infrastructure for the grown product. The largest volume in value terms of exports of fruits and vegetables falls on Kazakhstan (31.3% of the total volume of fruits and vegetables), which exceeds the volume of exports to the Russian Federation by 1.2 times.

The increase in the volume of exports of textile products can be directly considered as a result of reforms in the production of finished products and the formation of added value instead of the production of raw cotton. For example, at the end of January-June 2020, the export of textile products in the amount of US$833.0 million was carried out, which made up 13.3% of the total export volume and, compared to January-June 2019, it increased by 8.1%.

Cotton yarn (49.1%), as well as finished knitwear and garments (27.9%), account for the main share in the structure of textile exports. In January-June 2020, more than 395 types of textile products were exported to 56 countries.

As a result of practical work to diversify the textile industry of the republic and stimulate the export of finished products, the potential of our country is increasing.

The largest share of textile exports falls on the Russian Federation (US$311.4 million - 37.4%), China (US$164.9 million - 19.8%) and Kyrgyzstan (US$112.4 million - 13.5%).

During the reporting period, imports made up US$9.57 billion (a decrease in growth rates, compared to January-June 2019, made up 15.0%). The main share in its structure is occupied by machinery and transport equipment (37.1%), industrial goods (16.8%), as well as chemicals and similar products (13.7%).

Analysis of the dynamics of imports of goods and services also showed that in January-June 2020, compared to the same period of 2019, the volume of imports of goods decreased by US$1.26 billion and made up US$8.91 billion, while imports of services reached US$657.4 million

The dynamics of the volume of imports showed that in the first quarter of 2020 its volume made up US$4.76 billion, in the second quarter this figure with a slight increase reached US$4.8 billion. Compared to the first and second quarters of the previous year, the decrease was respectively 9.7% and 19.7%.

Analysis of the structure of imported goods and services in January-June 2020 also showed that, compared to January-June 2019, the share of imports of machinery and transport equipment increased from 35.9% to 37.1%, food products and live animals decreased from 8.1% to 7.9%, industrial goods - from 17.7% to 16.8%, respectively.

The analysis of imports of services also showed that in January-June 2020, compared to the same period of 2019, the share in the total volume of imports decreased from 9.7% to 6.9%.

The decrease in the volume of imports of food products and live animals is due to sugar, sugar and honey products (by 6.4%), animal feed (by 3.9%). There is also a decrease in the volume of imports for manufactured goods, products from non-metallic minerals (by 33.1%), cork and wood products (except for furniture) (by 26.8%). In recent months, the dynamics of the stabilization of the share of imports with the CIS countries and other foreign countries has been noted, which, within the limits, is a ratio of 36.9: 63.1.

According to the results of the reporting period, the first place among the major import partner countries was kept by China with a share of imports in the total volume of 21.4% and the Russian Federation, which, with a share of 20.1%, was in second place.

Compared to the same period of 2019, the top six import partner countries have not changed. In general, in January-June 2020, goods and services from 132 countries were imported to the Republic of Uzbekistan. A third of imports (US$6.95 billion) are accounted for by such large partner countries as China (the share in total imports is 21.4%), the Russian Federation (20.1%), the Republic of Korea (11.6%), Kazakhstan (9.7%), Turkey (4.8%), Germany (3.2%) and Lithuania (2.0%).

As the investment climate in the country improves and as a result of reforms implemented in this area, the growth of imports of machinery and transport equipment is natural. So, taking into account the large volumes of investments from China, Korea, Russia, Germany and Turkey, a high share of these countries in the volume of imports of these products remains.

The volume of imports of services in January-June 2020 made up US$657.4 million, or 6.9% of its total volume and decreased by 39.6% compared to the same period of 2019. Travel (tourism - 47.2%) and transport services (14.7%) make up the bulk of imports of services. In addition, other services accounted for 25.9% of total imports of services, including a high share in telecommunications, computer and information services (8.4%), fees for the use of intellectual property (7.6%), construction services (4.3%), etc.

At the end of January-June 2020, the volume of imports of building materials in its total volume made up 5.1% and reached US$489.4 million. In its structure, the main share is occupied by wood and wood products (47.4%), cement (7.7 %), glass and glassware (5.8%), as well as asbestos (2.3%). In general, the volume of imports of building materials in January-June 2020, compared to 2019, decreased (a decrease of 21.9%).

Based on the foregoing, it should be noted that the growth in imports of building materials, compared with previous years, is directly related to large-scale reforms in the field of improvement, in particular, housing construction, reconstruction and improvement of settlements.

The largest volumes of imports of building materials were recorded for wood and wood products. So, in January-June 2020, imports for these commodity items made up US$231.8 million (a decrease of 19.0%). The most noticeable decrease was noted for cement, the supply of which decreased by more than 2.3 times, from US$87.5 million in the first half of 2019 to US$37.5 million in the reporting period of this year.