Uzbekistan's latest economic data show continued expansion across industry, services, construction, and agriculture. But for Tashkent's policymakers and international partners like the European Bank for Reconstruction and Development (EBRD), the real question is whether this growth is improving daily life for the country's 36 million people.
In the first half of 2026, industry grew by 8%, services by 16.9%, construction by 13.8%, and agriculture by 4.7%. Real GDP expanded by 7.7% in 2025 and accelerated to 8.7% year-on-year in the first quarter of 2026, according to the International Monetary Fund. Since reforms began in 2017, nominal GDP has jumped from roughly €21 billion to around €130 billion, while exports surged from about €2.3 billion to approximately €28.5 billion. Uzbekistan also climbed 66 places in the Index of Economic Freedom between 2018 and 2026.
Investment shifts from state to private sector
A key transformation has been the changing source of capital. Private businesses, foreign investors, and small enterprises now drive a growing share of economic activity, alongside public spending. Francis Malige, Managing Director and Head of the Financial Institutions Business Group at the EBRD, attributes this to sustained reform momentum.
“Confidence in the country comes from a few factors, but chief among them is that this is a country with a young, growing population, a lot of entrepreneurs and a lot of dynamism. The reforms are going in the right direction,” Malige said.
According to the Ministry of Economy and Finance, the number of enterprises with foreign capital more than doubled in five years, from around 9,000 in 2020 to nearly 20,000 by mid-2026. Investment by small businesses increased from approximately €1.5 billion in 2016 to around €25.5 billion in 2025, while start-up funding reached a record €290 million last year. Saidislom Saidkhonov, Head of Department at the ministry, notes that the economy has become more diversified.
“All sectors of Uzbekistan are expanding, with services and construction leading overall economic growth. Foreign direct investment has increased significantly, while special economic zones, technoparks and industrial clusters are helping channel private investment into manufacturing and agro-processing,” he said.
Entrepreneurship is also becoming more resilient. More than 1.24 million businesses were operating by mid-2026, around 55,000 more than at the start of the year. The number of exporters rose to almost 6,000, and small businesses accounted for more than 42% of total exports.
Labour market reforms target quality of jobs
Economic growth alone does not guarantee higher living standards. Recent reforms have therefore focused on employment, formalisation, and household incomes. Marat Jurayev, First Deputy Minister of Poverty Reduction and Employment, says programmes aim to reduce informal work and expand entrepreneurship.
“We are implementing dedicated programmes and research, together with other ministries and agencies, to reduce informal employment. More than nine million people have been lifted out of poverty, and we have set ourselves the ambitious goal of eliminating absolute poverty in the near future,” he added.
Government data show a gradual shift toward more established businesses. The number of profit-tax-paying companies continues to rise, and businesses operating for more than ten years have increased. Medium-sized enterprises employing 11 to 99 workers have also expanded, suggesting growth is spreading beyond microbusinesses. Labour-market reforms have also widened economic participation. Akiko Fujii, Resident Representative of the United Nations Development Programme (UNDP) in Uzbekistan, highlights legislative changes that have opened new opportunities for women.
“The opportunity landscape for women has shifted dramatically due to recent legislative reforms and entrepreneurship support in Uzbekistan. Equal pay for work of equal value has been introduced, and restrictions on women's employment in a number of industries have been removed,” she told Euronews.
Everyday financial change
For many households and businesses, the most visible impact of reform has been in the financial system. Since the foreign exchange market was liberalised in 2017, Uzbekistan has introduced a unified exchange rate, expanded currency convertibility, and moved toward a more flexible regime. The IMF now classifies the exchange-rate system as floating. According to the Central Bank, the number of businesses conducting foreign exchange operations rose from around 29,000 in 2019 to approximately 90,000 by the end of 2025. Fayoz Gafurov, Head of the Monetary Operations Department, says this reflects a more developed market.
“Improvements in market infrastructure and conditions for participants have contributed to a more flexible exchange-rate environment,” Gafurov said.
Digital payments have also transformed daily commerce. Mobile banking, bank cards, and QR-code payments are now widespread. Djamshid Usmanov, Director of the Central Bank's Payment Systems Development Department, points to the universal QR-code system as a flagship project.
“The Central Bank is gradually implementing reforms to develop the payment ecosystem. One of the flagship projects has been the universal QR-code system, which allows new digital services to be tested efficiently while creating greater competition,” he said.
As Uzbekistan enters its second decade of reforms, the challenge is to ensure that headline growth translates into tangible improvements for workers, entrepreneurs, and families across the country. The EBRD and other international partners continue to support this transition, watching closely whether the benefits of a decade of change are reaching all corners of society.
