2024 has been a year of steady growth at 6.2% year on year and change for Uzbekistan, with key developments in politics, the economy and culture shaping the nation’s future. 

The year saw the country hold important parliamentary elections and a constitutional referendum, both of which had a significant impact on its direction. The elections on October 27 gave the pro-government Liberal Democratic Party of Uzbekistan (LDPU) a dominant position, though there was limited political competition as the Republic has yet to embark on political reform. A March referendum also extended President Shavkat Mirziyoyev’s term until 2030, sparking mixed reactions among the public.

On the economic front, Uzbekistan showed resilience and strong growth, recovering from the setbacks caused by the pandemic when growth stalled for three quarters, but remained in the black – one of only two countries in the world to achieve this feat. 

But the slowdown was temporary. The country’s GDP is expected to grow between 6-6.5% in 2024, thanks to increased consumer spending and investment.

While inflation fluctuated throughout the year, peaking at 10.55% in May before stabilising, the Central Bank of Uzbekistan (CBU) is targeting a 5% inflation rate in the medium term. 

The retail sector continues to thrive, and the banking industry is undergoing significant reforms, including privatisation and a shift toward digital banking. The IT sector is also expanding, with new partnerships in gaming and stock market integration, as well as a new AI strategy aimed at making Uzbekistan a leader in this field.

Internationally, Uzbekistan continued to strengthen its relationships with key partners, such as Qatar, Japan and the UK, securing 93 labour migration contracts in the first nine months of the year. These agreements are helping to create more job opportunities for Uzbeks abroad. 

The government also made significant strides in sustainability, with major initiatives to address climate challenges. These include the $1bn Aral Sea Green Rehabilitation Investment Project to restore the Karakalpakstan region, a methane leak repair project aimed at reducing carbon emissions and a $1.3bn waste-to-energy project. In addition, new animal welfare policies, such as the ban on circus animals, reflect the country’s growing commitment to ESG environmental and social issues.

Culturally, Uzbekistan showcased its global presence through events such as the FIFA Futsal World Cup and the International ICT Week. While there is growing public awareness about climate change, understanding of global events like COP29 remains limited in some areas.

Uzbekistan’s national debt is projected to reach $39.7bn by the end of 2024, about 35.5% of the country’s GDP. Low debt and prudent macroeconomic policies underpin the country’s  stable fiscal outlook as it continues to invest in its future.