BAKU, Azerbaijan, January 13. In recent years, Uzbekistan has been steadily strengthening its position as one of the most dynamically developing economic players in Central Asia. The results of 2025 and strategic priorities for 2026 show that the country is laying the groundwork for a sustainable development model, hitting the ground running with high growth rates, reeling in strong investment inflows, modernizing the economy from the ground up, and broadening its horizons through expanded cooperation with international partners.
By the end of 2025, Uzbekistan’s gross domestic product exceeded $145 billion for the first time in the country’s history. According to official forecasts, GDP is expected to reach $167 billion as early as 2026, confirming the sustained momentum of economic growth and the resilience of the current economic model.
For comparison, Kazakhstan’s GDP reached nearly $300 billion in 2025, almost twice the level of Uzbekistan. However, Uzbekistan currently demonstrates the highest economic growth rates in the region, reinforcing its role as one of the key drivers of regional development. The difference in the size of the economies is offset by faster growth dynamics and qualitative structural changes taking place in Uzbekistan’s economy.
According to estimates by the Eurasian Development Bank (EDB), Uzbekistan’s GDP growth amounted to 7.4% in 2025 and is expected to reach 6.8% in 2026, exceeding the regional average. At the same time, Kazakhstan’s economy is projected by the EDB to grow by 5.5% in 2026.
Against this backdrop, investment dynamics are drawing particular attention. For a landlocked country dependent on transit routes, foreign investment has become not only a source of capital but also a tool for overcoming geographic constraints, improving economic connectivity, and strengthening competitiveness.
The development of transport corridors, modernization of the energy sector, and digital integration are the areas where the participation of international banks and investors enhances Uzbekistan’s position in the regional and global economy. By the end of 2025, foreign investment attracted to the country’s economy reached $43.1 billion, representing a record level in the region.
To put things in perspective, foreign direct investment inflows into Kazakhstan hit a mere $14.9 billion during the first three quarters of 2025. These figures clearly illustrate the scale of investment activity in Uzbekistan and growing confidence among international investors. Importantly, not only the volume but also the structure of investment is changing, with key funds directed toward long-term sectors such as energy, transport, industry, digital infrastructure, and urban development.
“Key factors for attracting international investors to Uzbekistan include regulatory certainty, the availability of banking transactional documentation, and risk mitigation mechanisms such as partial credit guarantees and blended finance,” said Ali Malik, Senior Investment Specialist at the Asian Development Bank, speaking at the Azerbaijan and Central Asia Green Energy Week.
Active investment inflows and economic openness are creating long-term opportunities for the country. According to studies by Boston Consulting Group, Uzbekistan faces a strategic “window of opportunity” over the next five to ten years to further accelerate economic growth. Experts emphasize that consistent reforms and active engagement with international partners have already produced tangible results in terms of GDP growth and investment attractiveness.
The energy sector remains a central element of economic transformation. Electricity generation in Uzbekistan has reached 85 billion kilowatt-hours, increasing by nearly one-third compared to 2017. Over recent years, about $35 billion in foreign investment has been attracted to the energy sector, while new generation capacity has increased by nearly 9,000 megawatts.
A hefty chunk of this growth has sprouted from solar and wind power, along with hydropower, leading to the slice of green energy in installed capacity hitting about 30% in 2025 and, as the crystal ball suggests, climbing to 34.8% in 2026.
In the regional context, Uzbekistan is shaping its own model of energy transition focused on accelerated development of renewable energy sources. By comparison, Kazakhstan, while remaining an important energy player in the region, is pursuing a more gradual approach and plans to increase the share of renewables to around 15% by 2030. Uzbekistan, meanwhile, aims to reach a level of 40-54% within a shorter timeframe, relying on public-private partnerships and high investment activity. This approach allows the country to more rapidly build a sustainable energy base for further economic growth.
Another key piece of the puzzle for 2026 is getting our foot in the door with the World Trade Organization. The completion of a significant portion of negotiation stages brings the country closer to WTO membership, which will represent a key institutional step. Membership will ensure more predictable trade rules, strengthen investor protection, facilitate access of Uzbek goods and services to foreign markets, and anchor ongoing economic reforms within internationally recognized frameworks.
At the same time, the focus remains on the development of mahalla (regional) infrastructure, comprehensive territorial modernization, and the creation of sustainable cities under the New Uzbekistan concept. In parallel, a transition of all sectors of the economy toward a technological and innovation-driven growth model has been declared.
In 2026, Uzbekistan plans to launch 782 industrial and infrastructure projects with a total value of $52 billion, with 228 major facilities worth $14 billion scheduled to be commissioned during the year. A strong emphasis is placed on digitalization and the development of artificial intelligence: data centers and supercomputers will begin operating in several regions, while AI laboratories will be established at leading universities, creating a foundation for innovation in healthcare, transport, agriculture, geology, and the financial sector.
Changes in Uzbekistan’s economy confirm that the country is consistently strengthening its position in the competition for leadership in Central Asia. High growth rates, record investment inflows, modernization of the energy and industrial sectors, and expanded cooperation with international partners form a solid foundation for further development. Strategic priorities for 2026 reinforce this trajectory and aim to further strengthen Uzbekistan’s role in the regional economy and expand its presence in the global economic space.
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