More trade, greater deficit

Uzbekistan's foreign trade has started 2026 with momentum - but with a clear imbalance. While the overall volume is growing, the gap between imports and exports continues to widen. In the first two months of the year, foreign trade turnover rose to 11.6 billion US dollars - an increase of a good seven percent year-on-year. This development was primarily driven by a sharp rise in imports, which increased by almost 30% to over USD 8 billion. As a result, the trade deficit widened to 4.5 billion US dollars - a figure that clearly illustrates the structural imbalances in the Uzbek economy. In contrast, total exports fell by more than 23 percent. One of the main reasons for this was the almost complete absence of gold exports compared to the previous year - a traditionally important source of foreign currency for the country. Without this special effect, however, a more differentiated picture emerges: traditional goods exports increased by 24%. Textiles, agricultural products and processed goods were particularly in demand. The service sector also developed dynamically. Exports in this area rose by over 25%, mainly thanks to growing income from tourism and transportation. China and Russia dominate trade The trade structure remains highly concentrated. China is by far the most important partner and accounts for more than a quarter of total foreign trade. It is followed by Russia, which also plays a central role. Trade with regional partners such as Kazakhstan is also growing noticeably. At the same time, the broad list of around 160 trading partners underlines Uzbekistan's increasing international networking. The development in the energy sector is striking: while exports of natural gas declined, imports of fuels and gas increased significantly. Gas imports in particular multiplied year-on-year. This points to structural bottlenecks in the energy system - and at the same time increases dependence on imports. The current figures show: Uzbekistan's economy is undergoing a process of transformation. While new export sectors are growing, dependence on individual raw materials and imports remains high. In the long term, the decisive factor will be whether the export base can be broadened and the imbalance in foreign trade reduced. The post More trade, bigger deficit appeared first on ostwirtschaft.de.