Volume 4, issue 4, 2025
170
UZBEKISTAN'S ECONOMY: MODERN DIRECTIONS OF STRUCTURAL
TRANSFORMATIONS
Rakhmonov Fakhriddin Surkhanovich
Assistant to the Hokim (Governor) of the Qurghontepa Mahalla, Shahrisabz District
Administration, Student of the Human Resource Management program, Karshi State University
Ganiev Shakhzod Shukhrat ugli
Scientific Advisor, Intern-Lecturer at the Department of Economics,
Karshi State University
Abstract
: This article examines the modern directions of structural transformations in the
economy of the Republic of Uzbekistan. It highlights recent reforms, structural shifts in the
industrial, agricultural, and service sectors, as well as key trends in economic diversification,
digitalization, and innovation implementation. The article provides an in-depth analysis of the
impact of structural changes on macroeconomic stability, employment levels, and economic
growth. It also offers prospective directions and practical recommendations for further
development of Uzbekistan’s economy, based on comparative analysis with the experiences of
other developing countries.
Keywords
: economic reforms, structural changes, sectoral transformation, digital economy,
diversification, economic growth, stability
Introduction.
As Uzbekistan gradually transitions to a market economy, comprehensive
structural changes are being implemented. These changes aim to modernize the national
economic system, develop competitive sectors, diversify the economy, and ensure sustainable
growth based on modern technologies. Especially in recent years, the reforms have led to
industry and services becoming the main drivers of economic growth. By 2030
, Uzbekistan
aims to join the group of upper-middle-income countries, with 2024 marking the completion of
important phases of market reforms. By 2025, the goal is to qualitatively elevate the economy to
a new level and improve the population's standard of living.
Structural changes involve the reformation of economic sectors and the redistribution of
production resources in response to current demands. This process enhances macroeconomic
stability, boosts export capacity, creates new jobs, and fosters qualitative economic growth. This
article examines the modern directions, causes, and sectoral status of structural changes in
Uzbekistan
, comparing them with international experience. It also outlines promising reform
areas and practical recommendations for their effective implementation.
Relevance of the topic.
In a global context where economic processes are accelerating, digital
technologies are rapidly advancing, and climate change is impacting economic policy, every
nation must reconsider its economic structure. In Uzbekistan, too, structural modernization and
the integration of innovation and digital solutions into the economy have become urgent.
1
Uzbekistan Republic In the President's Strategy " Uzbekistan - 2030" dated 04.03.2024 designated main directions
according to reforms done priority for the 2024 increase measures Resolution No. PQ-109 on "On" . Source :
2
Uzbekistan
Republic In the President's Strategy " Uzbekistan - 2030" dated 04.03.2024 designated main
directions according to reforms done priority for the 2024 increase measures Resolution No. PQ-109 on "On" .
Source :
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171
Structural transformations are essential for sustainable economic growth, enhancing export
potential, developing new sectors, creating modern jobs, and strengthening economic security.
For instance, the share of high value-added industrial production is increasing, the service sector
is expanding its share in GDP, and digitalization is being integrated throughout the economy.
The "Digital Uzbekistan – 2030" strategy, various state programs focused on structural
transformations, and policies to attract foreign investment significantly enhance the academic
and practical importance of this topic.
Research Methodology.
A comprehensive approach using scientific-analytical methods was
applied to study the current directions of structural changes in Uzbekistan’s economy. First,
relevant legal documents, official statistics, strategic plans, and state decisions were analyzed.
Inductive and deductive methods were used to examine causes and effects of the situation.
Comparative methods were applied to benchmark Uzbekistan’s experience against that of
developing countries.
Statistical analysis was used to evaluate structural shifts, while trend and growth indicators
helped identify dynamics. The strengths, weaknesses, opportunities, and risks of structural
reforms were also assessed. Both classical economic theories and modern theories of structural
transformation underpinned the methodological framework of the research.
Literature Review.
Structural reforms and their modern directions are among the main priorities
of Uzbekistan’s economic policy. The Presidential Decree No. PQ-109 dated March 4, 2024,
outlines strategic priorities for implementing the “Uzbekistan – 2030” strategy, highlighting
diversification, technological innovation, and sustainable development.
Ochilov and Rahmonova, in their article “Sustainable Development of the Republic of
Uzbekistan: Priority Areas of Investment Activity,” emphasize the pivotal role of investments in
ensuring economic stability, calling for increased foreign investment and an improved
investment environment.
Data from the Statistics Agency under the President of Uzbekistan reveal clear structural shifts in
the economy, particularly in terms of gross value added across sectors, supporting the scientific
and graphical analysis presented in the article.
Analysis and Results.
One of the government’s primary objectives under the President’s
leadership is to position Uzbekistan among developed nations by rapidly enhancing the economy,
which directly contributes to raising the population’s welfare and overall national advancement
Although significant economic reforms have been introduced in recent years with visible positive
outcomes, challenges and shortcomings remain.
According to the Statistics Agency, the gross value added (GVA) of economic sectors has
significantly increased. For example, the manufacturing industry’s GVA rose from 13.4 trillion
soums in 2010 to 191.7 trillion soums in 2024
, highlighting its leading role in economic growth.
Similarly, the information and communication sector expanded from 1.2 trillion soums to 36.8
trillion soums over the same period.
. (1-,2-tables) ables 1 and 2 present detailed data on sectoral
GVA from 2010 to 2024, showing consistent growth across various sectors such as construction,
financial services, real estate, education, and health. Notably, the GVA of financial services
3
A.Ochilov , D. Rakhmonova , Uzbekistan of the republic stable development : investment of activity priority
directions , article , Green economy and development , issue No. 11, 2024. source :
taraqqiyot.uz/journal/index.php/GED/article/view/3679
4
Uzbekistan Republic president under Statistics Agency " Statistics" integrated information system ” data according
to Source :
https://siat.stat.uz/reports-filed/548/table-data
5
O‘zbekiston Respublikasi prezidenti huzuridagi Statistika agentligi “Statistika integrallashgan axborot tizimi”
ma’lumotlariga ko‘ra. Manba:
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172
surged from 1.5 trillion soums in 2010 to 61.6 trillion soums in 2024, indicating a substantial
expansion of the service economy. Graphs illustrate sharp growth trends in industry and ICT
sectors post-2015, with notable acceleration from 2020 onward.
Classifier
2010
2011
2012
2013
2014
2015
2016
2017
Village , forest
and fish farm
21251.3 30658.6 36954.7 42636.8 53613.2 64680.3 74779 90739.8
Mining
industry and
open mines
work
3298.7
3511.6
4987.3
5463.8
5421.8
6449.1
5960
10192.6
Production
release industry 8036.6 10576.3 13442.1 17806.4 23705.6 28353.9 34875.4 49912.7
With
electricity ,
gas , steam
supply and
weather
conditioning
1593.2
1770
1922.5
1968.2
2801
3391.6
4199.8
4662.8
Water with
supply ;
sewerage
system , waste
collection and
utilization to do
68.8
93.9
110.7
150.4
208.3
272
362.8
490.7
Construction
3760.5
4465.5
5601.4
7258.2
9098.3 11382.6 13148 22875.8
Wholesale and
retail trade ;
motor transport
tools and
motorcycles
repair
5551.5
7035.8
8228.2
10277 12717.6 14819.2 17094.5 22146.5
Transportation
and storage
6090
7851.8
9871
12173.2 14052.3 15670.5 16693.7 21313.6
Living and
feeding
according to
services
431.2
583.9
728
940.8
1118.7
1326.1
1660.9 15962.7
Information
and contact
1247.8
1580.5
2039.9
2435.8
2951.5
3487.7
4419.3
6130.1
Financial and
insurance
activity
1555.3
2111.9
2655.4
3448.1
4092.5
5026.1
5577.4
9162.7
Immovable
property with
operations
6233.2
8221.1
9942.9 11982.1 13802.8 16288.9 18841.9 22472.1
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173
Professional ,
scientific
and
technical
activity
551.2
706.7
936.2
1126.4
1338.7
1577.5
1805.6
2416.1
Management
according to
activity and
assistant
services show
896
1161.9
1495.5
1831.3
2226.3
2677.7
3160.3
3783.1
State
management
and defense ;
mandatory
social supply
1653
2293.2
3141.7
4264.7
5151.4
6355.6
8130.4
9047.2
Education
4849.8
6002.7
7623.1
9225.7 11023.5 13388.6 14996.7 17756.3
Health storage
and social
services show
1819.9
2443.4
2921.2
3654.1
4369.2
5205.9
5862
6782.3
Art , soul open
and rest to take
132.3
170.5
206.6
292.3
354.6
414.4
517.4
1519.9
Other of the
kind services
show
1035.9
1234.5
1552.5
1822.3
2316.2
2759.5
3451.9
4294.9
Table 1. Gross value added of sectors of the economy of Uzbekistan (in current prices,
annual, 2010-2017)
Classifier
2018
2019
2020
2021
2022
2023
2024
Village , forest
and fish farm
113327.4 129885 150493.7 181787.7 208809.2 242916.4 266565
Mining
industry and
open mines work
19710.9
30865.6
22161.9
28649.4
33396.2
36366.8
44525.7
Production
release industry
76509.9 104350.2 127781.3 159764.4 189871.5 233232.9 293734.8
With electricity ,
gas , steam
supply and
weather
conditioning
5768.9
8921.8
10994
12322.9
15380.5
18093
25162.1
Water with
supply ;
sewerage
system , waste
collection and
889.9
946.3
1076.1
1482.6
1562.2
1678.7
2472
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174
utilization to do
Construction
32788.4
45202
51927.4
63608.5
73209.4
84313.1
96801.9
Wholesale and
retail trade ;
motor transport
tools and
motorcycles
repair
27734.9
33502.7
38489.5
48910.9
57703.8
73224.6
86739.1
Transportation
and storage
25537.7
32103.6
31088
39045.3
47055.1
59527.4
75464.6
Living and
feeding
according to
services
18726.6
25110.9
25520.2
34017.4
50618.9
68224.3
86816.2
Information and
contact
7608.7
8033
10110.3
13020.4
17955.9
25830.9
36864
Financial and
insurance
activity
10217.2
13860.9
22011.1
20157.4
33778
43946.3
61602.4
Immovable
property with
operations
27656.5
31597.1
35420.6
41364.1
48621.1
58594.8
81165.1
Professional ,
scientific
and
technical
activity
3782
5481.8
6912.4
8615.2
10394.8
13094.3
16344.3
Management
according to
activity and
assistant services
show
5122.2
6283.7
6884.3
8559.6
11277.1
13920
17144.9
State
management and
defense ;
mandatory social
supply
15021.5
20081.5
23219.4
30863.2
43933.8
62455
63352.1
Education
21802.3
30742.2
32772
43098.1
53459.9
64211
75885
Health storage
and social
services show
8814.8
13409.3
18004.4
21196.2
24676.7
28545.8
33859.2
Art , soul open
and rest to take
1906
2552.1
2622.5
3692.2
4568.3
5916.4
7238.7
Other of the kind
5151.5
6467.3
6187.4
8388.3
9522.5
11914.8
14872.9
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175
services show
Table 2. Gross value added of sectors of the economy of Uzbekistan (in current prices,
annual, 2018-2024)
The service sector, especially in financial activities, real estate services, education, healthcare,
arts and entertainment, also has high growth rates. For example, in 2010, the volume of financial
services GDP amounted to 1,553.5 billion soums, while in 2024 this figure reached 61,602.4
billion soums. At the same time, the change in the ratio between the industrial and services
sectors indicates that the share of services in the economy is increasing.
Chart 1. Gross value added of sectors of the economy of Uzbekistan (in current prices,
annual, 2010-2024)
This indicates that Uzbekistan's economic model is moving from a traditional agrarian-industrial
economy to an innovative and service-oriented economy. In the construction sector, the volume
of GDP from 3,706.5 billion soums in 2010 reached 96,801.9 billion soums in 2024, confirming
the scale of infrastructure projects and the high level of economic activity. Investments in this
area increase the multiplier effect in the economy. In general, the results of the analysis show
that the economy of Uzbekistan is undergoing significant structural diversification, the role of
the services sector is increasing, and new directions based on digital technologies are gaining
priority. This indicates that structural changes are being combined with modern directions. We
can see that the above data is also reflected in the graph.
The graph also shows that while the sharp growth in the industrial sector began in 2015 and
peaked in 2023, there is also a steady and rapid growth in the construction and education sectors,
and the information and communication sector has also seen rapid growth, especially in recent
years. The financial sector has shown strong growth progress since 2020.
The economy of Uzbekistan has been witnessing significant structural changes in recent years.
Analysis shows that the volume of gross value added in various sectors of the country's economy
6
Uzbekistan
Republic president under Statistics Agency " Statistics" integrated information system ” data
according to author's chassis scientific creative development .
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176
is increasing every year, which acts as an important factor in ensuring sustainable economic
growth. In particular, such sectors as industry, construction, education, finance and information
and communication technologies are developing rapidly, as a result of which these sectors are
becoming the main directions of the modern economic model. Also, factors such as the
expansion of production capabilities, the introduction of elements of the digital economy, and the
increase in the potential of the service sector contribute to maintaining structural balance in the
economy. In particular, the rapid growth of industrial production, the sustainable development of
information technologies, and the increase in the potential of the financial sector help strengthen
the domestic economic base. The above growth dynamics are also clearly visible in the graphical
data: in the period from 2010 to 2024, the main sectors of the economy have consistently
achieved growth rates. This clearly demonstrates the effectiveness of the republic's economic
policy, the appropriateness of structural reforms and their practical effectiveness. In the future,
the foundation is being laid for creating a more effective economic model by ensuring the
stability of economic growth, increasing competitiveness and increasing the share of sectors with
high added value.
LIST OF REFERENCES USED:
1.
Resolution of the President of the Republic of Uzbekistan No. PQ-109 dated 04.03.2024
“On priority measures for the implementation of reforms in 2024 in the main areas established
by the “Uzbekistan — 2030” strategy”. Source:
2.
A.Ochilov, D. Rahmonova, Sustainable development of the Republic of Uzbekistan:
priority areas of investment activity, article, Green Economy and Development, No. 11, 2024.
source:
https://yashil-iqtisodiyot-taraqqiyot.uz/journal/index.php/GED/article/view/3679
3.
According to the "Integrated Statistical Information System" of the Statistical Agency
under the President of the Republic of Uzbekistan. Source:
