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The World Bank (WB) has called for reforms in Uzbekistan’s services sector, as the institution’s press office highlighted in a report shared with Kursiv.
The WB emphasises that the services sector is a key pillar of Uzbekistan’s economy, significantly contributing to GDP growth and job creation. In 2023, the industry accounted for 43.9% of the country’s GDP. In comparison, construction represented 7.1%, while industry contributed 20.6%.
Bank’s experts highlight that market reforms in Uzbekistan have led to sustainable economic growth since 2017. However, economic transformation has slowed recently, with the services sector showing only slight growth. The sector’s GDP contribution was estimated at 41% in 2010 and rose to 44% in 2022.
For the Uzbek economy to sustain its growth, reforms are necessary to foster private enterprise and enhance the services sector. The WB suggests prioritising innovative services such as IT, consulting and financial services. These global innovative services, which demand specialised knowledge and skills, demonstrate labour productivity rates twice as high as those in the industrial sector. Yet, this subsector employs merely 4% of all service sector workers.
To enhance the efficiency of various service subsectors, the WB recommends that Uzbekistan focus on improving its connectivity with external markets, boosting competitiveness, and acquiring essential competencies. Other suggestions include increasing logistics and digital infrastructure investments and lifting restrictions on cross-border trade in information and communication technology (ICT) services.
The Bank estimates that fully liberalising cross-border service trade could increase the country’s GDP by 17%.
The WB discussed Uzbekistan’s accession to the World Trade Organization (WTO). Joining this trade bloc will provide the country with the opportunity to implement reforms aimed at enhancing connectivity with foreign markets, as well as improving the competitiveness of domestic companies.
Kursiv Uzbekistan also reports that the services market in Uzbekistan grew by 13.2% in the first eight months of this year.
