Viewing results 1 - 6 of 34
Uzbekistan’s economic progress and future ambitions are in focus as the Indian magazine Business Central Asia dedicates its latest issue to the country’s development. Highlighting key points from President Shavkat Mirziyoyev’s address to the Legislative Chamber of the Oliy Majlis, the feature showcases Uzbekistan’s achievements and ambitious goals for the years ahead. The article highlights Uzbekistan’s remarkable economic transformation. Since the early 2000s, the country’s economy has doubled, surpassing the $100 billion mark. By 2024, per capita income is expected to reach $3,000, while exports have grown to exceed $25 billion for the first time. Gold and foreign exchange reserves have also seen substantial growth, surpassing $40 billion. Looking to the future, the Uzbekistan-2030 strategy outlines ambitious targets to further accelerate economic growth. The plan envisions increasing GDP to $160 billion, with a projected $110 billion milestone this year. If current growth rates are sustained, Uzbekistan’s economy could reach $200 billion by 2030, significantly improving living standards and the overall quality of life for its citizens. Ensuring macroeconomic stability is a key priority in the government’s roadmap. Over the next five years, Uzbekistan aims to sustain annual growth of 6-7%, expand the private sector’s share of the economy to 85%, and launch large-scale public-private partnership projects. The feature also emphasizes Uzbekistan’s long-term economic resilience. According to the World Bank, the country is poised to rank among the top three fastest-growing economies in Europe and Central Asia in 2024, further validating its development strategy. Uzbekistan’s leadership remains committed to maintaining growth momentum while addressing structural reforms. With a strong focus on sustainable development, the government’s policies aim to enhance economic opportunities and ensure inclusive growth for all segments of the population.
Aibar Dautov, head of Kazakhstan's Mining Industry Association, has called for reforms to the procedure for calculating the mineral extraction tax (MET) to boost budget revenues from oil and solid minerals. Speaking at the Astana Open Dialogue during discussions on the new tax code, Dautov noted that Kazakhstan currently employs ten different MET rates for crude oil taxation. These rates are determined based on two key factors: the price of oil at the time of sale and the annual production volume at a given field. The current tax structure is divided into the following production thresholds: 5% tax for annual production up to 250,000 tons 7% for 500,000 tons 8% for 1 million tons 9% for 2 million tons 10% for 3 million tons 11% for 4 million tons 12% for 5 million tons 13% for 7 million tons 15% for production up to 10 million tons 18% for production exceeding 10 million tons Dautov criticized this system as unfair to other sectors of the economy. “We believe the criterion of annual production volume should not exist at all. This differentiation has been in place for many years, but for some reason, it hasn’t been removed or acknowledged as a tax benefit. The Ministry of National Economy continues to support its inclusion in the new Tax Code. It’s unclear why this grading still exists—it should be eliminated and considered a relic,” Dautov stated. The complexity is even greater for solid minerals, according to Dautov, as their MET calculation currently involves 38 different tax rates for various types of minerals. The Times of Central Asia previously reported that Kazakhstan's Ministry of Industry and Construction has proposed replacing the current MET system with royalties. Under this system, taxes would be calculated based on the volume of sold products rather than the volume extracted. This change is scheduled to take effect on January 1, 2026, under new subsoil use contracts, while existing contracts will remain taxed under the current rates.
The Eurasian Development Bank (EDB) forecasts that Tajikistan and Kyrgyzstan will lead regional economic growth in 2025. According to the bank’s Macroeconomic Forecast, published on November 5, GDP growth rates for Kyrgyzstan are given at 8.7%, Tajikistan at 8.4%, and Kazakhstan at 5.5%. For comparison, the corresponding figure for Russia is just 2.4%. Tajikistan’s robust growth is attributed to rising prices for gold and other export metals, coupled with reduced costs for imported energy and food products. These factors are expected to enhance economic efficiency by freeing up funds for consumption and investment. Additionally, the country’s rapidly growing population remains a central driver of its economic expansion. Similarly, Kyrgyzstan’s strong economic performance will be fueled by industrial development, high investment activity, and resilient domestic demand. However, in both Kyrgyzstan and Tajikistan, industrial growth and investment activity are anticipated to lag behind GDP expansion. Kyrgyzstan and Tajikistan are expected to grow above the global average, supported by steady exports and robust domestic demand. Kazakhstan’s economy will benefit from increased oil production, large-scale government infrastructure projects, and supportive fiscal policies. The EDB predicts that inflation across the region will gradually decline, from 7.9% in 2024 to 6.4% in 2025. High interest rates will remain a key tool in controlling inflation, with rates expected at 7.3% in Kazakhstan by the end of 2025. Inflation in Kyrgyzstan and Tajikistan is projected to remain within target levels, reaching 5.0% and 5.8%, respectively. These lower inflation rates are expected to support continued economic stability in both countries.
During a conversation with Hugh Riddell, head of the World Bank’s office in Kyrgyzstan, Akylbek Japarov, Chairman of the Cabinet of Ministers, shared an anecdote about a wager made with the World Bank’s chief economist. “In 2022, at a World Bank session in Washington, your chief economist and I bet that Kyrgyzstan’s economic growth over the next 3-4 years would remain stable and exceed 7%. He doubted this was possible and was ready to wager a bottle of fine wine,” Japarov recounted at a recent event focused on Kyrgyzstan’s development. Japarov highlighted the latest economic figures to underscore his point: GDP growth for the first 11 months of 2024 stands at an impressive 9%. Confident in his position, Japarov announced his intention to claim his winnings. The anecdote reflects broader optimism about Kyrgyzstan’s trajectory. According to data presented by World Bank experts during discussions with the presidential administration, 89% of Kyrgyz citizens believe the country is moving in the right direction regarding political, social, and economic reforms. The World Bank is actively monitoring socio-economic trends in Kyrgyzstan through its “Listening to the Kyrgyz Republic” project. This initiative conducts monthly panel surveys of 1,500 households across all regions, using telephone interviews to track citizens’ well-being and gather insights into national development trends.
Over the past two decades, the gross domestic product (GDP) of Central Asia has grown fourfold in real terms and sevenfold in nominal terms, according to Evgeny Vinokurov, Deputy Head of the Eurasian Development Bank (EDB). Vinokurov highlighted significant improvements in the region’s economic landscape. Over the same period, population mobility has tripled, and incoming investments have surged by more than 17 times. Vinokurov emphasized that the last two years have underscored Central Asia’s status as an economically attractive and strategically important region. Positioned at the heart of Eurasia, Central Asia boasts strong transport and transit potential, a growing consumer market, and expanding opportunities for investment. Despite external challenges, the region’s economies have displayed remarkable resilience, maintaining steady growth and weathering global shocks effectively. Between 2022 and 2023, Central Asia’s economies grew at an average annual rate of 4.8%, significantly outpacing the global average of 3.4%. This makes the region’s growth rate 1.4 times faster than the global average. Vinokurov projected that Central Asia’s nominal GDP will surpass $500 billion in 2024. Despite these achievements, Central Asia faces complex challenges that require regional collaboration. Key issues include: -- Lack of access to the sea: Geographical isolation limits trade and economic integration. -- Climate and environmental risks: These pose threats to sustainable development. -- Water and energy management: Disjointed policies among countries hinder efficiency and sustainability. Vinokurov stressed the importance of joint efforts to address these challenges. Coordinated development of water and energy resources, renewable energy, and the Eurasian transport framework can yield cost-effective and efficient solutions. Central Asia’s impressive economic growth over the past 20 years reflects its potential as a key economic and transit hub in Eurasia. While the region faces significant challenges, collaborative solutions and investments in infrastructure and sustainability could unlock further growth and prosperity.
This month marks a significant milestone in Kazakhstan-China transport cooperation with the test shipment of lithium-ion batteries from China via the Trans-Caspian International Transport Route (TITR). This major trade corridor links China to Europe through Kazakhstan and the Caucasus. The decision was announced following a meeting between Kazakhstan’s Minister of Transport Marat Karabayev and China’s Transport Minister Liu Wei in Beijing on December 5. Strengthening TITR Cooperation The two ministers agreed on initiatives to further develop the TITR, including the creation of a permanent working group to facilitate the seamless flow of goods. They also highlighted advancements in the digitization of transport operations. Truckers can now receive permit forms within an hour through a newly implemented digital platform, streamlining international road transportation. The TITR is seeing rapidly growing freight traffic. According to Kazakhstan’s Ministry of Transport, road freight volumes with China have more than doubled annually. Before 2023, Kazakh truckers made approximately 50,000 trips per year. In 2024, this figure is projected to reach 230,000 trips. Expanding Multimodal Transport The meeting also explored the potential for developing cargo transportation via transboundary rivers between the two nations. Both ministers noted a surge in rail and road freight volumes, as well as transit transportation through the Middle Corridor (another name for the TITR). From January to October 2024, rail freight between Kazakhstan and China increased by 13%, reaching 26.6 million tons. Road freight volumes soared by 60% in the third quarter alone, amounting to 1.9 million tons. Meanwhile, cargo transportation from China to Europe via the TITR has experienced explosive growth. In 2024, the volume surpassed 27,000 twenty-foot containers, a 25-fold increase compared to the same period in 2023.
