Uzbekistan 

Uzbekistan country policy

Policy established 27 May 2009

• ILC, bank guarantee or central public guarantee (unconditional)
• The country ceiling is 1000 mln euro
• Early warning signal 100 mln euro
• - of which was used as at 2011-12-31 18 mln euro

Country class: 6

Uzbekistan country facts

Atradius DSB Economic Research
Country Report last updated :  1 December 2009
Country :  UZBEKISTAN 

Political Situation
Centralized Power

Head of state
President Islam Karimov (since March 1990, re-elected in December 2007 for a seven-year term)

Form of government
Government of People’s Democratic Party (PDP, direct successor to the Communist Party) and independents. Shavkat Mirziyaev (a Karimov loyalist) is prime minister since December 2003. Prime minister and deputy ministers appointed by President.

Internal Economic Situation
Economic Slowdown Due To Crisis

General situation
High economic growth figures for years. In 2008 economic growth was 8.9%. This year growth is expected to slowdown to 7.8%. Lower export, remittances and foreign direct investments contribute to this lower economic growth. Especially the deteriorated situation in Russia and Kazakhstan, one of its main trading partners and the main destinations of Uzbek migrant labour, has a negative impact. Increasing spending and investment by the government will support the economy. Investments will take place in infrastructure and hydrocarbon sector. Next year economic growth will pick up to 8.1%. Uzbekistan is the world’s second largest cotton exporter. Inflation will decline to 8.6% this year from 14% in 2008. State has a dominant role in the economy. The lack of reform will prevent any significant improvements in the economy. Data lack transparency.

External Economic Situation
High Current Account Surplusses

Main sources of foreign exchange
Cotton, gold, energy products

Main foreign markets
Ukraine (27%), Russia (20%), Turkey (8%), Kazakhstan (6%)

Main expenses of foreign exchange
Machinery and equipment, foodstuffs, chemicals

Balance of payments 
Lower export revenues result in a lower CA surplus in 2009. Imports of consumer goods is restricted.