Economy of Uzbekistan

The government of Uzbekistan, through the Central Bank of the Republic of Uzbekistan, announced that agriculture is predicted to play a major component in the country's economic development in the future. Agriculture in Uzbekistan employs 28% of the labor force and contributes 24% of GDP (as of 2006). Another 8% of GDP comes from the processing of domestic agricultural output.Cotton, once Uzbekistan's primary cash crop, has decreased in prominence as wheat has gained importance due to food security considerations for the rapidly growing population. The area cropped to cotton was reduced by more than 25%, from 2 million hectares in 1990 to less than 1.5 million hectares in 2006. Meanwhile, wheat cultivation increased by 60%, from around 1 million hectares in 1990 to 1.6 million hectares in 2006. Cotton production dropped from 3 million tons annually in the pre-independence decade to around 1.2 million tons since 1995. Despite these reductions, Uzbekistan still produces three times as much cotton as all the other Central Asian countries and Azerbaijan combined.

Uzbekistan was the 5th largest world producer of uranium, the 12th largest world producer of gold, the 7th largest world producer of rhenium, the 12th largest world producer of molybdenum, the 21st largest world producer of phosphate, and the 19th largest world producer of graphite.<br>Minerals and mining are also important to Uzbekistan's economy. Gold, alongside cotton, is a major foreign exchange earner, unofficially estimated at 20% of total exports. Uzbekistan is the world's seventh-largest gold producer, mining about 80 tons per year, and holds the fourth-largest reserves in the world. Uzbekistan has an abundance of natural gas, used both for domestic consumption and export; oil used for domestic consumption; and significant reserves of copper, lead, zinc, tungsten, and uranium. Energy use inefficiency is generally high, as low controlled prices do not encourage consumers to conserve energy. Uzbekistan is a partner country of the EU INOGATE energy programme, which focuses on enhancing energy security, converging member state energy markets based on EU internal energy market principles, supporting sustainable energy development, and attracting investment for energy projects of common and regional interest.

Uzbekistan's banks have demonstrated reasonably stable performance in a largely state-dominated local economy. Sector stability is currently supported by rapid economic growth, low exposure to external financial markets and the strong external and fiscal position of the sovereign. However, the sector remains vulnerable to possible economic shocks due to weak corporate governance and risk management, fast recent asset growth, significant directed lending and acquisitions of problem assets. Banks’ foreign currency obligations, specifically those arising from trade finance, are particularly vulnerable due to existing foreign exchange constraints.

Uzbekistan's retail sector remains dominated by traditional markets, known as bozorlar, where individual vendors sell food, housewares, clothing, and other consumer goods. However, the country's retail sector is rapidly modernizing. The construction of modern supermarkets and malls has accelerated in recent years. The retail market was estimated at $17 billion in 2017, with rising incomes, population growth, and a shift from informal to formal retail expected to drive continued expansion. Major supermarket chains include local players Korzinka.uz and Makro (Uzbekistan), as well as the French multinational chain Carrefour, which opened its first store in Uzbekistan in 2021. The country's first modern shopping malls, such as the Samarkand Darvoza and Compass developments, are located in Tashkent. The sector has also seen growth in online retail. In 2021, Korzinka acquired a US$40 million stake in Angelsey Foods, the Singapore mother entity of Korzinka. In the same year, the company also secured $12 million in debt financing to promote food security and sustain the livelihoods of more than 5,000 employees and 1,200 farm workers in Uzbekistan.

Silk road route's three important cities are located in Uzbekistan, namely Khiva, Bukhara and Samarkand. There are numerous well connected tourist destinations in Uzbekistan.There are five UNESCO World Heritage Sites in Uzbekistan and 30 are on tentative list