Uzbekistan has recorded a dramatic reduction in poverty over the past four years, according to a new World Bank assessment. The national poverty rate fell from 17% in 2021 to 5.8% in 2025, lifting an estimated 3.7 million people above the poverty line. The country's Ministry of Employment and Poverty Reduction reports an even lower rate of 3.6% for the first nine months of 2026.
The World Bank's Poverty and Equity Assessment, presented in Tashkent, attributes the progress primarily to rising wages and expanding employment. Using the Bank's upper-middle-income benchmark of $8.30 per person per day (adjusted for purchasing power), poverty fell from 38.1% to 12.4% over the same period. That places Uzbekistan among the 15 largest poverty-reduction episodes globally since 2000.
Wages and jobs drive change
According to the assessment, wage increases accounted for 6.1 percentage points of the 8.4-percentage-point reduction in poverty recorded between 2022 and 2025. Real wages for low-paid workers grew by at least 11–12% annually after inflation. Among men in the poorest fifth of the population, the employment rate jumped from 38% in 2022 to 65% in 2025, while the share in salaried employment rose from 18% to 46%.
“More jobs and higher wages were the main drivers of Uzbekistan's progress in reducing poverty,” said Najy Benhassine, the World Bank's Division Director for Central Asia, in comments to Euronews.
However, the Bank also flagged concerns about the quality and stability of work. Around 60% of poor male wage earners are employed informally, and more than 40% work in irregular, temporary or seasonal positions. “Workers in these conditions face higher income uncertainty and fewer opportunities to enhance economic security,” Benhassine noted.
Separately, Uzbekistan's Ministry of Employment and Poverty Reduction reported that 824,000 people were placed in permanent jobs during the first nine months of 2026, while the employment of 980,000 informal workers was formalised.
A growing middle class, but vulnerabilities remain
The share of Uzbekistan's population classified as middle class increased from 37% in 2021 to more than 72% in 2025. The upper-middle-class segment—defined by greater economic security—rose from 8% to 31%. Yet around 22% of the population remained economically vulnerable in 2025, meaning that job losses, illness or other shocks could push them back into poverty.
“The progress is real, but not everyone who has moved above the poverty line is fully protected from falling back,” Benhassine explained.
Regional disparities are stark: in the capital, Tashkent, only 2% of residents were classified as vulnerable, compared with 32% in Andijan, a region in eastern Uzbekistan.
Gender gaps and policy priorities
The World Bank identifies expanding access to stable employment—particularly for women and those outside major economic centres—as a key priority. Women account for 92% of economically inactive adults in poor and vulnerable households, with 85% citing domestic and care responsibilities as the main barrier to work. The gender pay gap stands at 35–40%.
The Bank recommends expanding affordable childcare, full-day schooling and vocational training, alongside reforms to improve competition, access to finance and private-sector productivity.
At the presentation, Uzbekistan's Minister of Employment and Poverty Reduction, Botir Zohidov, said the findings confirmed the results of reforms in employment and social protection. “The Ministry will continue working to expand access to decent jobs, increase household incomes and strengthen the social protection system,” he said.
The government has also announced changes to its poverty-reduction programmes. At a meeting chaired by President Shavkat Mirziyoyev on 3 September, officials reported that 15,000 of the 86,000 small businesses established in the regions over the past year had ceased operating, and 62,000 borrowers were struggling with loan repayments. The administration plans to transfer more financing powers to district authorities and revise how state-backed business programmes are evaluated.
Uzbekistan's progress is part of a broader regional trend. Across Europe and Central Asia, roughly 21 million people moved above the international poverty threshold, with nearly 40% of them in Uzbekistan. The country's experience offers lessons for other Central Asian economies, including neighbouring Azerbaijan's expanding financial ties and the region's growing focus on innovation and clean energy.
