World Bank: Uzbekistan GDP Growth Hits 7.7% in 2025

Tashkent, Uzbekistan (UzDaily.com) — The World Bank has released its April economic update for the Europe and Central Asia region, reporting that Central Asian nations showed robust growth in 2025. The region's aggregate GDP increased to 7% compared to 5.8% in 2024, marking the highest performance in the last 14 years.

Uzbekistan’s economy demonstrated a notable acceleration, with GDP growth reaching 7.7% compared to 6.7% the previous year. The primary drivers were high gold prices, active investment demand, rising real household incomes, credit expansion, and ongoing structural reforms. Remittance inflows surged by approximately 37%, reaching roughly US$18.9 billion—accounting for about 13% of the country's GDP—with 78% of these transfers originating from Russia.

Foreign direct investment (FDI) during the first three quarters of 2025 grew by 75%, exceeding US$20 billion, which is more than double the figure recorded at the start of 2021. Uzbekistan continues to strengthen trade and investment ties with China, which has become a key partner and investor, solidifying the country’s status as a regional logistics and manufacturing hub.

The rise in gold prices contributed to increased export revenues, a trend also noted in Kyrgyzstan. Inflation in Uzbekistan declined following energy price adjustments but remained above the Central Bank's 5% target, leading to a 50-basis-point hike in the key interest rate. The fiscal deficit narrowed by 1.2 percentage points of GDP due to reduced energy subsidies and higher revenues from gold sales.

The poverty level in the country has dropped significantly, from over 97% in the early 2000s to approximately 4% in 2025, based on the lower-middle-income poverty line of US$4.20 per day (2021 purchasing power parity).

The World Bank also revised its growth forecasts for Uzbekistan: the economy is now expected to grow by 6.4% in 2026 (up from the 6% January forecast) and 6.7% in 2027, exceeding previous estimates. Meanwhile, average growth rates in Central Asia are expected to slow to 4.9% amid the stabilization of oil production in Kazakhstan.