EDB assesses growth and investment boom in Uzbekistan

The Eurasian Development Bank (EDB) published an analytical report dedicated to the 35th anniversary of Uzbekistan's independence, praising the country's economic growth and investment boom.

According to the EDB, Uzbekistan's economy continues to demonstrate high growth rates: GDP increased by 7.7% in 2025, and economic activity accelerated to 8.5% in the first half of 2026. This GDP growth rate in 2025 was one of the highest in the last decade, more than double the global average of 3.4%.

Against this backdrop, Uzbekistan is actively expanding investment, industrial production, and the volume of market services, while international development banks are increasing project funding.

Consumer demand, investment, and the development of the service sector remain the main drivers of economic growth. From January to June 2026, retail trade grew by 20.2%, fixed capital investment by 17.5%, and the volume of market services increased by 16.9%. Real incomes increased by 9.2%, outpacing GDP growth.

At the same time, inflation is slowing. In May 2026, it reached a historic low of 5.5% and is expected to gradually approach the target level of 5%. The EDB notes the key role of the Central Bank's monetary policy in reducing price pressure.

Industrial production increased by 8% in the first half of 2026, with manufacturing accounting for 86.3% of total industrial output. The expansion of production capacity is being implemented as part of the state industrial development program, which includes technological modernization and expansion of value chains. A total of 782 industrial and infrastructure projects are scheduled to launch in 2026.

Uzbekistan remains highly attractive to foreign investors. According to the Eurasian Development Bank's Mutual Investment Monitoring, the volume of accumulated foreign direct investment from countries in the Eurasian region and Asia has reached $39.6 billion, increasing more than 2.5-fold over the past five years.

The largest investors are China, Russia, the Gulf countries, Turkey, and the Republic of Korea. Chinese investment has grown fivefold over the past five years, reaching $11.5 billion, while investment from Gulf countries has increased more than 20-fold, reaching $9.8 billion. Russia remains the second-largest investor, with accumulated FDI of approximately $10 billion by the end of 2025.

The structure of foreign investment has also changed significantly. Investment in the electric power sector has grown particularly rapidly: while in 2020 this sector accounted for 2% of accumulated foreign investment, by 2025 its share reached 42%, or $16.6 billion. The Eurasian Development Bank attributes this growth to the active promotion of investment in renewable energy.

International financial institutions play a significant role in financing the country's economy. Over the past five years, they have approved $26.6 billion in investments in Uzbekistan, $7.6 billion of which was non-sovereign financing without state guarantees. This type of financing accounts for approximately 30% and continues to grow. In the first half of 2026 alone, international financial institutions approved over $700 million in non-sovereign investments. Over the past 15 years, the volume of non-sovereign transactions in Uzbekistan has grown approximately 12-fold: from an average of approximately $100 million per year in 2008-2010 to approximately $1.5 billion per year in 2023-2025.

Uzbekistan joined the Eurasian Development Bank in 2025. The EDB is already actively working in the country, expanding the Uzbek economy's access to long-term financing.

The bank believes that increased foreign trade and investment, rising domestic demand, and industrial and infrastructure development provide the foundation for maintaining high rates of economic growth in Uzbekistan in the medium term.

The Eurasian Development Bank is a multilateral development bank operating in Eurasia. As of the end of June 2026, its accumulated portfolio included 348 projects with a total investment volume of $22.1 billion. The majority of these projects are projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, industry, and mechanical engineering. As part of the EDB Strategy for 2022–2026, the bank is implementing three megaprojects: the "Water and Energy Complex of Central Asia," the "Eurasian Transport Framework," and the "Eurasian Commodity Distribution Network."