BAKU, Azerbaijan, January 13. In recent years,
Uzbekistan has been steadily strengthening its position as one of
the most dynamically developing economic players in Central Asia.
The results of 2025 and strategic priorities for 2026 show that the
country is laying the groundwork for a sustainable development
model, hitting the ground running with high growth rates, reeling
in strong investment inflows, modernizing the economy from the
ground up, and broadening its horizons through expanded cooperation
with international partners.
By the end of 2025, Uzbekistan’s gross domestic product exceeded
$145 billion for the first time in the country’s history. According
to official forecasts, GDP is expected to reach $167 billion as
early as 2026, confirming the sustained momentum of economic growth
and the resilience of the current economic model.
For comparison, Kazakhstan’s GDP reached nearly $300 billion in
2025, almost twice the level of Uzbekistan. However, Uzbekistan
currently demonstrates the highest economic growth rates in the
region, reinforcing its role as one of the key drivers of regional
development. The difference in the size of the economies is offset
by faster growth dynamics and qualitative structural changes taking
place in Uzbekistan’s economy.
According to estimates by the Eurasian Development Bank (EDB),
Uzbekistan’s GDP growth amounted to 7.4% in 2025 and is expected to
reach 6.8% in 2026, exceeding the regional average. At the same
time, Kazakhstan’s economy is projected by the EDB to grow by 5.5%
in 2026.
Against this backdrop, investment dynamics are drawing
particular attention. For a landlocked country dependent on transit
routes, foreign investment has become not only a source of capital
but also a tool for overcoming geographic constraints, improving
economic connectivity, and strengthening competitiveness.
The development of transport corridors, modernization of the
energy sector, and digital integration are the areas where the
participation of international banks and investors enhances
Uzbekistan’s position in the regional and global economy. By the
end of 2025, foreign investment attracted to the country’s economy
reached $43.1 billion, representing a record level in the
region.
To put things in perspective, foreign direct investment inflows
into Kazakhstan hit a mere $14.9 billion during the first three
quarters of 2025. These figures clearly illustrate the scale of
investment activity in Uzbekistan and growing confidence among
international investors. Importantly, not only the volume but also
the structure of investment is changing, with key funds directed
toward long-term sectors such as energy, transport, industry,
digital infrastructure, and urban development.
“Key factors for attracting international investors to
Uzbekistan include regulatory certainty, the availability of
banking transactional documentation, and risk mitigation mechanisms
such as partial credit guarantees and blended finance,” said Ali
Malik, Senior Investment Specialist at the Asian Development Bank,
speaking at the Azerbaijan and Central Asia Green Energy Week.
Active investment inflows and economic openness are creating
long-term opportunities for the country. According to studies by
Boston Consulting Group, Uzbekistan faces a strategic “window of
opportunity” over the next five to ten years to further accelerate
economic growth. Experts emphasize that consistent reforms and
active engagement with international partners have already produced
tangible results in terms of GDP growth and investment
attractiveness.
The energy sector remains a central element of economic
transformation. Electricity generation in Uzbekistan has reached 85
billion kilowatt-hours, increasing by nearly one-third compared to
2017. Over recent years, about $35 billion in foreign investment
has been attracted to the energy sector, while new generation
capacity has increased by nearly 9,000 megawatts.
A hefty chunk of this growth has sprouted from solar and wind
power, along with hydropower, leading to the slice of green energy
in installed capacity hitting about 30% in 2025 and, as the crystal
ball suggests, climbing to 34.8% in 2026.
In the regional context, Uzbekistan is shaping its own model of
energy transition focused on accelerated development of renewable
energy sources. By comparison, Kazakhstan, while remaining an
important energy player in the region, is pursuing a more gradual
approach and plans to increase the share of renewables to around
15% by 2030. Uzbekistan, meanwhile, aims to reach a level of 40-54%
within a shorter timeframe, relying on public-private partnerships
and high investment activity. This approach allows the country to
more rapidly build a sustainable energy base for further economic
growth.
Another key piece of the puzzle for 2026 is getting our foot in
the door with the World Trade Organization. The completion of a
significant portion of negotiation stages brings the country closer
to WTO membership, which will represent a key institutional step.
Membership will ensure more predictable trade rules, strengthen
investor protection, facilitate access of Uzbek goods and services
to foreign markets, and anchor ongoing economic reforms within
internationally recognized frameworks.
At the same time, the focus remains on the development of
mahalla (regional) infrastructure, comprehensive territorial
modernization, and the creation of sustainable cities under the New
Uzbekistan concept. In parallel, a transition of all sectors of the
economy toward a technological and innovation-driven growth model
has been declared.
In 2026, Uzbekistan plans to launch 782 industrial and
infrastructure projects with a total value of $52 billion, with 228
major facilities worth $14 billion scheduled to be commissioned
during the year. A strong emphasis is placed on digitalization and
the development of artificial intelligence: data centers and
supercomputers will begin operating in several regions, while AI
laboratories will be established at leading universities, creating
a foundation for innovation in healthcare, transport, agriculture,
geology, and the financial sector.
Changes in Uzbekistan’s economy confirm that the country is
consistently strengthening its position in the competition for
leadership in Central Asia. High growth rates, record investment
inflows, modernization of the energy and industrial sectors, and
expanded cooperation with international partners form a solid
foundation for further development. Strategic priorities for 2026
reinforce this trajectory and aim to further strengthen
Uzbekistan’s role in the regional economy and expand its presence
in the global economic space.
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