UZBEKISTAN'S ECONOMY: MODERN DIRECTIONS OF STRUCTURAL TRANSFORMATIONS

Аннотация

 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.

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Рахмонов F. ., & Ганиев S. . (2025). UZBEKISTAN’S ECONOMY: MODERN DIRECTIONS OF STRUCTURAL TRANSFORMATIONS. Международный журнал политических наук и экономики, 1(2), 170–176. извлечено от https://www.inlibrary.uz/index.php/ijpse/article/view/114100
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International Journal of Political Sciences and Economics

Аннотация

 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.


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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

1

, 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

2

, 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 :

https://lex.uz/docs/-6854841

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 :

https://lex.uz/docs/-6854841


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Volume 4, issue 4, 2025

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

3

.

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

4

, 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.

5

. (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 :

https://yashil-iqtisodiyot-

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:

https://siat.stat.uz/reports-filed/548/table-data


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Volume 4, issue 4, 2025

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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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Volume 4, issue 4, 2025

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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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Volume 4, issue 4, 2025

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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Volume 4, issue 4, 2025

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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)

6

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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Volume 4, issue 4, 2025

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:

https://lex.uz/docs/-6854841

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:

https://siat.stat.uz/reports-

filed/548/table-data

Библиографические ссылки

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: https://lex.uz/docs/-6854841

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

According to the "Integrated Statistical Information System" of the Statistical Agency under the President of the Republic of Uzbekistan. Source: https://siat.stat.uz/reports-filed/548/table-data