Uzbekistan‘s economic Transformation: A Nation on the Rise
Uzbekistan is experiencing a period of unprecedented economic growth and modernization under President Mirziyoyev, marking a significant shift for the Central Asian nation. Recent data reveals a robust economy, strengthening international standing, and tangible improvements in the lives of its citizens. This article provides a extensive overview of Uzbekistan’s progress, its key achievements, and its ambitious plans for the future, drawing on official statements and recent economic indicators.
Unprecedented Economic gains in 2025
2025 proved to be a landmark year for Uzbekistan’s economy. For the first time in its history, the nation’s Gross Domestic Product (GDP) surpassed €123.25 billion, representing ample growth.This economic expansion was fueled by a 23% increase in exports and a surge in foreign investment,reaching nearly €37 billion – a figure equivalent to almost a third of the national economy. Furthermore,Uzbekistan’s gold reserves exceeded €51 billion,demonstrating increasing financial stability and confidence.
These figures aren’t simply abstract numbers; President Mirziyoyev emphasizes that the benefits are being felt “in every mahalla (community), every family, and in daily life.” This positive impact is attributed to strategic investments in job creation, critical infrastructure upgrades, and expanded access to essential services.
Strengthened International Confidence & Creditworthiness
Uzbekistan’s economic success has garnered international recognition. Leading credit rating agencies upgraded the country’s sovereign credit rating from BB- to BB, a crucial step that is projected to reduce external borrowing costs by up to €250 million annually. This upgrade reflects increased investor confidence in Uzbekistan’s economic stability and future prospects.
The nation’s commitment to technological advancement is also being acknowledged globally. Uzbekistan climbed an impressive 71 places in the World bank’s Technology Readiness Index, now ranking among the top 10 countries worldwide. This demonstrates a concerted effort to embrace innovation and digital transformation.
Improving Living Standards: From Infrastructure to Poverty reduction
The economic growth is directly translating into measurable improvements in the quality of life for Uzbek citizens. Electricity production reached 85 billion kilowatt-hours, supporting a population exceeding 38 million and a rapidly expanding industrial sector.
significant investments in infrastructure are addressing long-standing needs. Irrigation infrastructure now reaches 470,000 households in previously underserved areas, empowering approximately 3 million peopel to generate income through household plots. Housing construction remains a priority,with 135,000 new apartments completed in 2025,adding to the over 210 million square meters of residential and non-residential space commissioned nationwide over the past nine years.
Perhaps the most impactful achievement is the significant reduction in poverty. Unemployment fell to 4.9% from 5.5%, and a remarkable 1.5 million people were lifted out of poverty in 2025 alone. The national poverty rate now stands at 5.8%, a dramatic decrease from nearly one-third of the population prior to the implementation of the ongoing reforms.
Expanding Regional & International Influence
Uzbekistan is actively strengthening its regional and international relationships. The country successfully hosted several high-profile events in 2025, including a session of the UNESCO General Conference, the Central Asia-EU Summit, and key meetings with representatives from the EU, the United States, Japan, and neighboring Central Asian nations.
Diplomatic breakthroughs were also achieved, notably the signing of a trilateral border agreement with Tajikistan and Kyrgyzstan, resolving a long-standing regional dispute. Moreover, Uzbekistan has deepened its ties with the European Union through an enhanced partnership agreement, positioning itself as a vital platform for regional dialogue and cooperation. President Mirziyoyev affirmed this commitment, stating, “We will continue to build bridges of cooperation with countries near and far.”
Looking Ahead: Priorities for 2026 – The Year of Mahalla Development & Social Prosperity
Uzbekistan is building on its momentum with a clear vision for the future. 2026 has been designated the “Year of Mahalla Development and Social Prosperity,” underscoring the government’s commitment to localized growth and community empowerment.
Key priorities for 2026 include:
* Supporting Entrepreneurship: Over €715 million will be allocated to strengthening entrepreneurial infrastructure within mahallas, complemented by €10 billion in financing for small and medium-sized businesses, with specific support for women and young entrepreneurs.
* Investing in Innovation: Uzbekistan is poised to launch its first satellite and begin preparations for its first astronaut, alongside continued investment in research centers and technology hubs.
* Job Creation & Labor Market Reform: Focus will be placed on creating
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