The volume of direct investment in Uzbekistan in 2023 declined to the previous two years, the balance of payments published by the Central Bank showed.

While the net inflow of direct investment into the country 2021 topped $2.3 billion, and in 2022 it grew to $2.6 billion, then in 2024 it fell by $425 million - to $2.2 billion (- 16%).

Over the past five years, only 2020, when the world faced the coronavirus pandemic, saw a decline in private equity flows. Then the Uzbek economy shrank by 2%.

The volume of portfolio investments last year was nearly $1 billion. This is due the issue of “green” Eurobonds worth 4.25 trillion soums and $660 million, respectively.

The financial accounts reached $6.6 billion, of which 70% occurred in the fourth quarter of the year.

Sharp decline in foreign direct investment should be taken as a warning sign for the future, with the current account deficit relative to GDP reaching the historical high of $7.8 billion, or 8.6% of GDP.

The shortage of goods and services topped $17.6 billion (+$3.9 billion by 2022), the net flow of primary income was minus $761 million (in 2022 it was $902 million), the net flow of secondary income was $ 10.5 billion ($12.1 billion).

According to him, the worsening of the current account deficit is explained by an increase in budget expenditures, as well as a worsening trade deficit (minus $13.7 billion) and an increase in the outflow of investment income in the context of a strengthening of the real exchange rate (it strengthened by 4.6% in 2023).