Uzbekistan’s GDP grew at an estimated 6.5% rate in 2024, according to an annual report prepared by the Presidential Statistical Agency. It added that shadow and informal economic activity was responsible for generating more than a third of GDP.

Preliminary estimates indicate that Uzbekistan’s overall GDP in 2024 amounted to 1.45 quadrillion som, or roughly $115bn, according to the report. After breaking down economic activity by various sectors, including the “gross value added” by the industry, trade and service sectors, the report takes the unusual step of examining the role of the “unobserved” economy. It estimates that the country’s shadow economy generated about 505.7 trillion som worth ($39bn) of goods and services during the year, equivalent to around a 34% share of overall GDP.

Shadow economic activity was most prevalent in the agricultural, forestry and fishery sectors, accounting for almost two-thirds of GDP in those spheres, the report indicated. Roughly 40% of economic activity in the construction and service sectors also occurred in the shadows.

The report defined the “unobserved” economy as “types of economic activity that are not fully or partially covered by regular statistical observations” and thus officials must use indirect methods to make estimates. It also classifies “unobserved” economic activity in two categories: the “informal” economy, which is defined as “activity related to the production of goods (provision of services), carried out by households or individuals without registration in the established manner;” and, the “shadow” economy, or “activity not prohibited by law, but intentionally hidden from government authorities in order to evade taxes.”

This article first appeared on Eurasianet here.