In 2020, Uzbekistan was one of only three economies in Europe and Central Asia (ECA)

to sustain economic growth. Efforts to change a Soviet-style economy have just recently begun,
and it's no secret how short it will take. Interestingly, Uzbekistan is also dubbed as "the most
developed country in 2020", with an economic growth rate of 4%.

Uzbekistan is a warm, landlocked country comprising 11% densely forested, irrigated

river valleys. About 60% of the population remains in poorly inhabited rural areas. Uzbekistan is
now the world's second-largest exporter and fifth largest of cotton, a major producer of gold and
oil, and a regional leader in chemical and machinery production. Natural resources such as
genuine gold, gas, petroleum, coal, uranium, and silver are abundant in the region. Gross
Domestic Product (GDP) was $20.93 trillion in 2020, increasing at a natural pace of 4.9 percent.
In 2003, the country's inflation rate was calculated to be 14.6 percent. Apart from its rich natural
resources, Uzbekistan attempted to help dysfunctional state enterprises and protect customers
from the shocks of accelerated economic transition after independence. These policies ultimately
resulted in significant inflation and an economic recession. In addition, inflation was kept under
control by reforms, and small businesses started to flourish. Larger organizations are interested
in forming joint partnerships with global companies. However, currency and exchange controls
continue to be too restrictive to attract substantial foreign investment. Globally falling gold,
copper, and cotton prices also harm the economy. Uzbekistan is expanding private-sector
prospects. These prospects are most significant in tradable markets, which will produce more
stable and well-paid employment. The World Bank-International Finance Corporation team
examined four sectors of the economy that seem vital for Uzbekistan's growth; the horticulture
sector, chemicals sector, digital economy, and air connectivity. These bold measures would
undoubtedly result in immense gains, but they could also result in many defeats. Additionally,
they are difficult to initiate and maintain. However, the reward for persistence is that Uzbekistan
can become a more competitive, accessible, and prosperous country.

With international assistance, a privatization program is being initiated gradually. The

said program is needed to generate hard currency and stimulate economic growth. Russia and the
other CIS countries are the country's primary export and import partners. Additionally, outside
the CIS, the United Kingdom, Switzerland, South Korea, Turkey, and the Netherlands are
significant export markets. Apart from the CIS, the most prominent import allies are the United
States of America, Germany, France, South Korea, and the Republic of China. The primary
benefit is the country's abundance of natural wealth. Slowing growth in foreign direct investment
and credit attractiveness has also been projected in 2020, at 1.8 percent. Moreover, human
resources rapidly grow due to a high share of young inhabitants, and an improving educational
standard contributes to long-term growth in productivity.

To summarize, Uzbekistan is an appealing developing country. The government

developed a package of incentives in the agribusiness, oil, and tourism sectors. With continued
liberalization, Uzbekistan could be a magnet for foreign investment, bringing much-needed
employment, management, and technical know-how, and eventually developed to the country's
people. As a result, economic growth in Central Asia is expected to recover to 3% in the final
months of 2021.
 Sources:

https://www.grin.com/document/109608

https://www.adb.org/countries/uzbekistan/economy

https://www.heritage.org/index/country/uzbekistan

https://tradingeconomics.com/uzbekistan/gdp-growth-annual

https://www.weforum.org/agenda/2019/12/asia-economic-growth/

https://alexika.com/blog/2020/02/21/the-fastest-growing-countries-in-asia-2020-2024

https://www.imf.org/en/News/Articles/2021/02/17/mcs-021721-uzbekistan-staff-concluding-
statement-of-the-2021-article-iv-mission
https://invest.gov.uz/mediacenter/news/economic-growth-is-predicted-for-uzbekistan-in-2021/

https://www.adb.org/news/uzbekistan-economic-growth-2020-slow-further-rebound-2021