Uzbekistan's external debt and financial position: Key insights from recent report

Uzbekistan's total external debt has reached $60.2 billion, according to a report published by the Central Bank covering the balance of payments, international investment position, and external debt for the first nine months of 2024.

By the end of the reporting period, state external debt accounted for approximately $32.5 billion, while corporate external debt stood at $27.7 billion. 

The report highlighted that Uzbekistan's current account deficit decreased by 17% compared to the same period last year, amounting to $3.4 billion, or 4.3% of GDP. This reduction was driven by a slower increase in the negative trade balance and a rise in international remittances. Exports grew by 4%, totaling $19.1 billion, influenced by shifts in raw material prices and increased services provided to non-residents.

Imports rose by 5.5%, reaching $31.4 billion. This growth was slower than in previous years, attributed to a high import base in 2023 and sustained domestic demand for energy resources, machinery, equipment, and food products. The negative trade balance increased by 8%, amounting to $12.4 billion. However, the positive balance in primary and secondary incomes, at $973 million and $8 billion respectively, partially offset the trade deficit.

The diversification of labor migration and higher wages abroad contributed to increased income. Despite this, growing non-resident investment income added to the country's expenses. The current account deficit was financed through capital inflows, including direct and portfolio investments. Net foreign direct investment inflows rose by 7%, reaching approximately $1.9 billion.

Net portfolio investment amounted to $1.7 billion, driven by international bond transactions. Structural factors led to a negative financial account balance of $3.9 billion by the end of the nine-month period. The foreign currency portion of international reserves decreased by $678 million, but rising global gold prices boosted the overall reserves by $6.6 billion, bringing the total to $41.1 billion as of October 1, 2024.

Uzbekistan's net international investment position strengthened by 29% compared to the beginning of the year, reaching $16.3 billion by October 1, 2024. Foreign currency assets held by residents increased by $0.8 billion (a 13% rise), while external liabilities grew by $7.1 billion (a 10% increase).

In the first half of 2024, Uzbekistan's public debt balance was reported at $37 billion.