GDP, current US$ billion
GDP per capita, current US$
Life Expectancy at Birth, years
After a wave of exchange rate, trade, and price liberalization reforms in 2017–21, the Government’s focus is shifting to deeper structural constraints, such as weak factor markets and dominant state-owned enterprises and banks. A next phase of social and economic reforms is needed to create a larger and more competitive private sector, which is key to addressing the economy’s legacy of state-led growth with weak job creation.
In 2021, about 7.5 percent of citizens lived below the World Bank’s lower-middle-income poverty line. Many more live close to this line and are at high risk of poverty. One in six households has a member working abroad, mostly in Russia. Reforms to expand social assistance started during the COVID-19 pandemic will serve as an effective platform to expand safety nets and labor market support programs to prevent a sharp rise in poverty.
Russia’s invasion of Ukraine will slow Uzbekistan’s growth to 3.6 percent in 2022, due to a halving of remittances, record global oil and food prices, trade, investment, and banking disruptions, and the return of migrant workers. More social protection and labor market programs are needed to prevent increases in poverty. Higher commodity revenues and lower public investment spending will create some fiscal space and, with tighter monetary policy, support macroeconomic stability.