Uzbekistan Economy - 2005

Economy - overview:
Uzbekistan is a dry, landlocked country of which 11% consists of intensely cultivated, irrigated river valleys. More than 60% of its population lives in densely populated rural communities. Uzbekistan is now the world's second-largest cotton exporter, a large producer of gold and oil, and a regionally significant producer of chemicals and machinery. Following independence in December 1991, the government sought to prop up its Soviet-style command economy with subsidies and tight controls on production and prices. Uzbekistan responded to the negative external conditions generated by the Asian and Russian financial crises by emphasizing import substitute industrialization and by tightening export and currency controls within its already largely closed economy. The government, while aware of the need to improve the investment climate, sponsors measures that often increase, not decrease, the government's control over business decisions. A sharp increase in the inequality of income distribution has hurt the lower ranks of society since independence. In 2003, the government accepted the obligations of Article VIII under the International Monetary Fund (IMF), providing for full currency convertibility. However, strict currency controls and tightening of borders have lessened the effects of convertibility and have also led to some shortages that have further stifled economic activity.

GDP:
purchasing power parity - $47.59 billion (2004 est.)

GDP - real growth rate:
4.4% (2004 est.)

GDP - per capita:
purchasing power parity - $1,800 (2004 est.)

GDP - composition by sector:
agriculture: 38%
industry: 26.3%
services: 35.7% (2003 est.)

Labor force:
14.64 million (2004 est.)

Labor force - by occupation:
agriculture 44%, industry 20%, services 36% (1995)

Unemployment rate:
0.6% officially, plus another 20% underemployed (2004 est.)

Population below poverty line:
28% (2004 est.)

Household income or consumption by percentage share:
lowest 10%: 3.6%
highest 10%: 22% (2000)

Distribution of family income - Gini index:
44.7 (1998)

Inflation rate (consumer prices):
3% (2004 est.)

Budget:
revenues: $2.457 billion
expenditures: $2.482 billion, including capital expenditures of NA (2004 est.)

Public debt:
41.5% of GDP (2004 est.)

Agriculture - products:
cotton, vegetables, fruits, grain; livestock

Industries:
textiles, food processing, machine building, metallurgy, gold petroleum, natural gas, chemicals

Industrial production growth rate:
6.2% (2003 est.)

Electricity - production:
47.7 billion kWh (2002)

Electricity - consumption:
46.66 billion kWh (2002)

Electricity - exports:
4.5 billion kWh (2002)

Electricity - imports:
6.8 billion kWh (2002)

Oil - production:
143,300 bbl/day (2004 est.)

Oil - consumption:
142,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Oil - proved reserves:
297 million bbl (1 January 2002)

Natural gas - production:
63.1 billion cu m (2001 est.)

Natural gas - consumption:
45.2 billion cu m (2001 est.)

Natural gas - exports:
17.9 billion cu m (2001 est.)

Natural gas - imports:
0 cu m (2001 est.)

Natural gas - proved reserves:
937.3 billion cu m (1 January 2002)

Current account balance:
$461.9 million (2004 est.)

Exports:
$3.7 billion f.o.b. (2004 est.)

Exports - commodities:
cotton 41.5%, gold 9.6%, energy products 9.6%, mineral fertilizers, ferrous metals, textiles, food products, automobiles (1998 est.)

Exports - partners:
Russia 21.2%, China 14%, Ukraine 7%, Turkey 6.3%, Tajikistan 5.8%, Bangladesh 4.2% (2004)

Imports:
$2.82 billion f.o.b. (2004 est.)

Imports - commodities:
machinery and equipment 49.8%, foodstuffs 16.4%, chemicals, metals (1998 est.)

Imports - partners:
Russia 26.4%, South Korea 10.8%, Germany 9.4%, China 8.3%, Kazakhstan 6%, Turkey 6% (2004)

Reserves of foreign exchange and gold:
$1.603 billion (2004 est.)

Debt - external:
$4.351 billion (2004 est.)

Economic aid - recipient:
$87.4 million from the US (2003)

Currency (code):
Uzbekistani sum (UZS)

Exchange rates:
Uzbekistani sums per US dollar - 1,020 (2004), 971.265 (2003), 771.03 (2001), 423.832 (2001), 236.61 (2000)