THE ROLE OF FOREIGN INVESTMENT IN THE ECONOMIC GROWTH OF UZBEKISTAN

Abstract

This article investigates the contribution of foreign investment, and foreign direct investment (FDI) in particular, to the economic growth of the Republic of Uzbekistan over the period 2021-2025. Drawing on official data from the Central Bank of Uzbekistan, the National Statistics Committee, UNCTAD, and the U.S. Department of State's Investment Climate Statements, the study applies descriptive and comparative statistical analysis to examine the dynamics of FDI inflows alongside GDP growth, sectoral and geographical investment structure, and the institutional reforms that have shaped Uzbekistan's investment climate since 2017. The results show that FDI inflows into Uzbekistan grew markedly over the period under review, rising from roughly USD 2.2-2.5 billion in 2022-2023 to USD 7.2 billion in 2023 (broader definition) and to USD 11.9 billion in 2024 (a 53.6% annual increase, equivalent to about 10.3% of GDP), while total foreign investment - including loans - reached USD 34.9 billion in 2024 and was projected to reach USD 42 billion in 2025. Over the same period, real GDP growth accelerated from roughly 6.0% in 2023 to 6.5-6.7% in 2024 and 7.7% in 2025. The analysis finds a consistent positive association between rising foreign investment and GDP growth, most visible in energy, manufacturing, and infrastructure sectors supported by an expanding network of special economic zones. The article concludes that continued liberalization of the investment climate, further capital-market development, and diversification of investment sources are essential for sustaining Uzbekistan's investment-driven growth model.