Uzbekistan's economy sees 6.4% GDP growth in H1 2024 amid rising inflation and strong investment

In the first half of 2024, the economies of Uzbekistan's main trading partners showed positive dynamics. Kazakhstan's GDP grew by 3.3%, Kyrgyzstan's by 8.1%, China's by 5%, and Russia's by 5% for January-May.

Inflation in Uzbekistan accelerated: prices rose by 5.2% compared to December last year, and the consumer price index in June increased by 3.5%. On an annual basis, inflation reached 10.6%. Food prices fell by 1.3%, while non-food prices rose by 3.3%. The main contribution to inflation was the increase in service prices by 21.1%, especially against the backdrop of rising energy tariffs.

Investment activity remained high despite some slowdown after unprecedented growth in the first three months of the year. From January to June, capital investments increased by 37%, with foreign direct investments growing by 47%.

Growth in production was observed across all sectors of the economy. Industrial production increased by 7.8%, agriculture by 3.8%, and the construction sector by 10.1%. The volume of market services rendered grew by 12.9%, with the highest growth in the information and communication, financial services, and education sectors.

Uzbekistan's foreign trade turnover increased by 8.5% to $32 billion, with exports rising by 5.5% and imports by 10.6%. Significant growth was observed in the export of fuel and energy materials (by 40%) and chemical products (by 33%).

During the period under review, imports of fuel and energy materials increased by 66%, services by 57%, finished products by 7.4%, machinery and transport equipment by 5.6%, and industrial goods by 2.1%.