Migrant workers boost Uzbekistan’s economy with $12.6 billion in transfers

Between January and October, Uzbekistan received $12.6 billion in remittances, a 34% increase compared to the same period in 2023. October alone saw $1.36 billion in transfers, up 28.3% year-over-year.

Russia accounted for 78% of the total remittances, with $9.8 billion sent by Uzbek migrants, reflecting a 35% increase. Other key contributors included Kazakhstan ($699 million), the United States ($470 million, +37%), South Korea ($458 million, +71%), Turkey ($331 million), and the United Kingdom ($109 million, +76%).

The Central Bank attributed the growth in remittances to improved economic activity and wages in key partner countries, alongside increased labor migration to developed nations.

The average wages offered to Uzbek migrants in Russia rose by 38% across major sectors, with construction seeing a 55% increase, delivery services by 48%, taxi and restaurant services by 46%, and freight transportation by 14%.

Organized recruitment of Uzbek workers for jobs abroad more than tripled, exceeding 113,000 people. This growth was driven by expanded migration opportunities to developed countries.

Of the total remittances received, $7 billion were transferred through traditional international money transfer systems (a 19% rise), $4.9 billion via peer-to-peer (P2P) transfers to individual accounts (+52%), and $650 million through SWIFT bank transfers, which more than doubled (up 2.4 times).

P2P transactions saw a significant rise, with their share in outbound transfers growing to 39%, supported by the development of cross-border payment infrastructure and increasing popularity of digital services. In the first ten months of the year, the volume of P2P transactions surged by 46%, totaling 59 million transactions.

On the outbound side, $2.3 billion was sent from Uzbekistan to other countries during the same period.