As of October 1, 2024, Uzbekistan's total external debt has surpassed $60 billion: the government external debt amounted to $32.5 billion, while the external corporate debt reached $27.7 billion. This information is highlighted in a brief overview by the Central Bank, which focuses on the balance of payments, investment position, and external debt.
Over the past nine months, the current account deficit decreased by 17% compared to the same period last year, totaling $3.4 billion (4.3% of GDP). This was attributed to a slowdown in the growth rate of the negative trade balance, as well as a significant increase in the volume of international money transfers into the country.
The Central Bank notes that fluctuating commodity prices in international markets and an increase in the volume of international services provided to non-residents contributed to a 4% rise in export volume, reaching $19.1 billion. In contrast, imports grew at a slower pace (+5.5%) and amounted to $31.4 billion.
“This is due to the fact that, despite a high level of investment activity and domestic consumer demand stimulating the import of energy resources, machinery, and equipment, as well as food products, 2023 had a high base formed by a one-time large import of certain types of goods,” the regulator explained.
From January to September, the negative trade balance increased by 8% compared to the same period last year, totaling $12.4 billion. However, the balance of primary and secondary incomes resulted in a positive balance of $973 million and $8 billion, respectively, which partially offset the trade balance deficit.
Source: Central Bank
Diversification of the geography of labor migration and the increase in wages in traditional host countries for Uzbeks have contributed to the stimulation of inflows from primary and secondary income components, while the growth of investment income from non-residents has been a factor in increasing expenditures.
The current account deficit was financed by capital inflows in the financial account, particularly through direct and portfolio investments, as well as other sources. Specifically, over the past nine months, the net inflow of foreign direct investment into the country increased by 7%, totaling $1.9 billion.
The net attraction of portfolio investments amounted to $1.7 billion, primarily formed through operations with international bonds, while the negative balance of the financial account reached $3.9 billion.
Over the past nine months, there was a decrease in the currency component of gold and foreign exchange reserves by $678 million. However, due to the rise in global gold prices, the remaining international reserves increased by nearly $6.6 billion since the beginning of the year, totaling $41.1 billion as of October 1.
According to the Central Bank, influenced by operations in the financial account of the balance of payments and non-operational changes, the net international investment position strengthened by 29% compared to the beginning of the current year, reaching $16.3 billion. At the same time, the volume of foreign currency assets of residents increased by $10.8 billion (a growth of 13%), while the volume of external liabilities rose by $7.1 billion (+10%).
Previously, Spot reported that TBC Bank Uzbekistan issued two-year bonds worth 128 billion sums.