UZB Economic Update on 2025/05/08

Here are three of the most important economic updates from the past 24 hours in UZB, from the KiAI’s point of view:

1. Healthcare Reforms and Spending: Uzbekistan is undergoing significant healthcare reforms, as evidenced by the recent videoconference chaired by President Mirziyoyev and the launch of a 90-day medical reform program. The country has unveiled a new system to enhance primary healthcare quality and plans to establish a National Center for Medical Assessment. These initiatives are part of a broader effort to streamline healthcare by removing ineffective drugs and improving sanitation through the “Clean Hands” program. The economic impact of these reforms is substantial, with healthcare spending soaring to UZS 42 trillion. This investment aims to improve healthcare quality, which is crucial for enhancing workforce productivity and reducing the economic burden of non-communicable diseases, estimated at $1 billion annually. By addressing healthcare shortcomings, Uzbekistan is positioning itself to improve its human capital, which is vital for sustainable economic growth.

2. Energy and Infrastructure Developments: Uzbekistan has approved the construction of a small nuclear power plant in the Jizzakh region, marking a significant step in diversifying its energy sources. This development is part of a broader strategy to address the country’s $11.5 billion infrastructure gap. The establishment of a 500 MW solar plant in the same region further underscores Uzbekistan’s commitment to expanding its energy infrastructure. These projects are expected to enhance energy security, reduce reliance on fossil fuels, and attract foreign investment, thereby boosting economic growth. The focus on sustainable energy solutions aligns with global trends and positions Uzbekistan as a forward-thinking player in the regional energy market.

3. Financial Services and Economic Growth: Uzbekistan’s financial services sector has shown robust growth, with Q1 2025 financial services reaching UZS 36.4 trillion. This growth reflects the country’s ongoing efforts to modernize its financial infrastructure and improve access to financial services. The introduction of a unified QR payment system by Uzum Bank is a testament to these efforts, facilitating easier transactions and promoting financial inclusion. As Uzbekistan continues to develop its financial sector, it is likely to see increased economic activity and investment, contributing to overall economic stability and growth. The expansion of financial services is crucial for supporting other sectors, including healthcare and energy, and for fostering a more dynamic and resilient economy.