Uzbekistan’s Economic Leap Forward: Achievements in 2025 and Bold Priorities for 2026

In 2025, Uzbekistan solidified its reputation as one of Central Asia’s fastest-growing economies under President Shavkat Mirziyoyev’s ongoing reforms. The country’s nominal GDP surpassed US$145 billion, with real growth averaging around 7.2–7.6% in the first nine months, driven by strong domestic demand, remittances, and robust exports. Exports rose sharply to approximately US$30.9 billion in the first 11 months (a 26% increase), led by gold, energy, and industrial goods. Foreign direct investment inflows remained strong, with commitments exceeding US$40 billion in recent years, fueled by investor-friendly policies, privatization efforts, and major projects in renewable energy, infrastructure, and manufacturing. International reserves climbed to nearly US$49 billion, while the poverty rate fell to around 6%, lifting millions out of poverty through targeted social programs, job creation, and mahalla-based support systems. Tourism boomed, attracting over 10.7 million international visitors in the first 11 months, a 73% increase from pre-pandemic levels, boosting service exports to US$4.4 billion.

These gains reflect the success of market-oriented reforms initiated since 2016, including currency liberalization, tax simplification, and WTO accession progress. The energy sector expanded significantly, with electricity production reaching new highs, while social initiatives improved access to clean water for millions and expanded inclusive education. Uzbekistan’s upgraded sovereign ratings and partnerships with global institutions, including the World Bank and IMF, underscored its growing credibility. The country emerged as a key regional hub, strengthening ties with the EU, US (via C5+1), and Gulf states, while positioning itself along the Middle Corridor trade route.

Looking ahead to 2026—declared the Year of Mahalla Development and Social Prosperity—President Mirziyoyev outlined an ambitious roadmap for qualitative transformation. Key priorities include modernizing over 9,000 mahallas with improved infrastructure, launching 782 industrial and infrastructure projects worth US$52 billion, and achieving 6.6% GDP growth to reach US$167 billion. The focus will shift toward high-tech sectors, digitalization, and artificial intelligence, with new data centers, supercomputers, and AI labs in universities, alongside plans to launch Uzbekistan’s first satellite and send an astronaut into space. Entrepreneurship will receive massive support through tax stability, 1010 trillion soums for infrastructure, and targeted loans for SMEs, women, and youth. Demand stimulation measures include affordable housing mortgages, service-sector subsidies, and tourism expansion aiming for US$20 billion in services over five years. Transport upgrades, such as 500 km of new railways and highway modernization, will enhance connectivity. Vocational education will be revamped with 100 renovated technical colleges and international partnerships, while green initiatives will plant trees across 250,000 hectares and invest in water-saving technologies and emission controls. Public administration reforms will advance e-government and judicial transparency.

Uzbekistan’s 2025 performance marks a historic milestone in its journey toward upper-middle-income status by 2030. By balancing economic liberalization with people-centered policies, the country is fostering inclusive, sustainable growth. Continued structural reforms—reducing state dominance, accelerating privatization, and enhancing financial flexibility—will be crucial to sustaining momentum amid global uncertainties. As Uzbekistan enters its “Third Renaissance,” it stands poised to become a resilient, diversified hub bridging Europe and Asia, delivering prosperity for its people and stability for the region.