At the invitation of the President of the Republic of Uzbekistan Shavkat Mirziyoyev, the President of the Republic of Kazakhstan Kassym-Jomart Tokayev arrived in our country on April 5 this year.
In Uzbekistan and Kazakhstan, goals have been set to increase the share of non-primary exports and the production of finished products with high added value. In this regard, the Center for Economic Research and Reforms has analyzed the most promising areas of cooperation between the two countries, including the creation of joint industrial clusters in the manufacturing industry, taking into account the complementarity of economies and the resource base available in the countries.
Over the past 6 years, Uzbekistan's economy has grown 1.43 times with an average annual growth of 5.3%, while Kazakhstan's GDP has increased 1.25 times with an average annual growth of 3.2%.
The past year turned out to be quite favorable for the industry of the two countries. If in 2023 the share of industry in Uzbekistan's GDP, excluding construction, amounted to 26.1%, then Kazakhstan's share was 26.5%.
Uzbekistan's industry grew by 6% to $55.9 billion, while in Kazakhstan, industry grew by 4.3% to $101.7 billion.
The structure of Uzbekistan's industry is 21% metallurgical production, 17% mechanical engineering, 15% textile and leather production, 13% food products, 9% oil and gas, 7% each accounted for production in the chemical and energy industries and the construction materials sector, the rest is provided by such industries as pharmaceuticals.
The structure of Kazakhstan's industry is 38% oil and gas and coal, 28% metallurgical production, 9% each falls on food production and mechanical engineering. Also, the energy sector and building materials account for 6% each. The rest is provided by other small industries.
The manufacturing industries of Uzbekistan and Kazakhstan are actively developing, focusing on the non-primary sector. Over the past year, the manufacturing industry of Uzbekistan showed growth of 6.7% and amounted to 47.1 billion dollars. At the same time, Kazakhstan's manufacturing industry grew by 4.1% to $47.4 billion.
According to current data for 2023, the share of processed products in industry (in value added) in Uzbekistan is 79.1%, and in Kazakhstan 46.5%.
Manufacturing products have a high added value, have a multiplier effect on the economy by creating new products, jobs, increasing tax revenues, and developing related industries, including transport and logistics, and services.
Both in Uzbekistan and Kazakhstan, against the background of stable output growth with more active investment in a number of manufacturing industries, the industry is becoming more diversified.
Investments in fixed assets of Uzbek and Kazakh industries in 2023 increased by 22.1% and 13.7%, amounting to $30 billion in Uzbekistan and $39.5 billion in Kazakhstan.
The analysis showed that investments in fixed assets grew modestly, which turned out to be more significant in some sectors. In particular, in Uzbekistan, the largest inflow of investments affected manufacturing industries, which account for 29% of investments, another 12% for energy, 8.3% for housing construction and 7.5% for transport, while 10% for the mining industry.
In Kazakhstan, 19.5% of the inflow of investments in 2023 is accounted for oil and gas production, 18% for housing and real estate construction, 14% for transport, 9% for manufacturing and 5% for metal mining.
The dynamics of investments in fixed assets in both countries remains positive, but moderate in comparison with the pre-pandemic level.
By the end of 2023, the growth in the construction sector in Uzbekistan was 6.4%, while in Kazakhstan it was 13.3%.
In agriculture in Uzbekistan, the growth rate was 4.1%, and the share in GDP was 24.3%. On the contrary, the agricultural sector of Kazakhstan decreased by 7.3%, and its share in GDP amounted to 4.3%.
Last year, renewable energy sources were commissioned in Uzbekistan: 1,610 MW (11 stations), 442 MW (solar panels on roofs of houses), 2024: 2,624 MW (35 stations), 705 MW (solar panels on roofs of houses).
According to the results of last year, 496 MW (16 stations) were commissioned in Kazakhstan.
As the analysis shows, the socio-economic development of Uzbekistan and Kazakhstan demonstrates fairly high development indicators, positive dynamics in such indicators as output and job creation.
In our countries, measures are being taken to support the manufacturing sector by attracting investments, expanding access to credit, various support programs, tax incentives, etc.
The products of the manufacturing industry have a high added value. In this regard, additional measures are needed today to support the manufacturing industries.
As a result, support for the manufacturing industry will have an impact on increasing its share in GDP, increasing exports of processed products and improving quality through increased competition.
Reported by the Uzbekistan Daily.
