Tashkent, Uzbekistan (UzDaily.com) — The World Bank has released a comprehensive analysis of Uzbekistan’s economic development from 2010 to 2022, outlining key achievements and current challenges on the path toward sustainable growth and economic modernization.

According to the report titled “Uzbekistan Country Economic Memorandum,” the country achieved steady per capita value-added growth averaging 4.2% per year—exceeding the rates seen in Europe, Central Asia, and low-income countries in the middle-income group. However, the World Bank notes that this growth was largely driven by capital investments in infrastructure, buildings, and equipment, rather than improvements in productivity or expansion of the private sector.

The report pays special attention to the issue of job creation. Despite economic growth between 2017 and 2022, employment gains remained modest. Only in the last two years has the labor market shown positive shifts. To transition into the high-income country category, Uzbekistan must achieve near double-digit growth rates. This would require boosting total factor productivity, addressing market and regulatory distortions, overcoming technological lag, and deepening integration into global trade.

The development of the private sector is highlighted as crucial. As of 2020, Uzbekistan had around 2,000 state-owned enterprises whose combined revenues made up nearly one-third of GDP. Notably, 80% of these operated in sectors where private businesses could function more efficiently. This underscores the urgent need for active privatization and enhanced market competition.

Weak infrastructure, especially in energy and transport, remains a major barrier for businesses. The World Bank argues that improvements in these sectors would reduce costs, increase regional connectivity, and strengthen the investment climate. Energy sector reforms, including tariff restructuring and attracting private capital, are expected to ensure financial sustainability by 2026–2027.

External trade is another focus of the report. While trade as a share of GDP more than doubled between 2017 and 2022—reaching 71.6%—only 6% of Uzbek firms export their products, highlighting the country’s limited integration into global markets.

To address these challenges and achieve sustainable growth, the World Bank recommends a range of strategic measures. These include investing in energy and transport infrastructure, particularly in economically dynamic regions such as Tashkent, Kashkadarya, Samarkand, and Navoi; modernizing the rail network; accelerating privatization of state-owned enterprises through a clear roadmap; improving corporate governance; increasing small and medium enterprise access to finance; lowering administrative barriers; eliminating import tariffs on food and medicine; streamlining customs procedures; and digitalizing foreign trade.

The report emphasizes that implementing these recommendations would enable Uzbekistan not only to maintain high growth rates, but also to build a competitive economy capable of generating employment and playing a more active role in the global economic system.