Uzbekistan’s foreign trade turnover in January reached US$2.94 billion
Tashkent, Uzbekistan (UzDaily.com) – In January 2020, Uzbekistan’s foreign trade turnover (FTT) reached US$2.94 billion, the State Statistics Committee of Uzbekistan reports.
Of the total FTT, exports reached US$1.28 billion (a decrease of 15.1% was recorded by January 2019), while imports reached US$1.66 billion (a decrease of 1.3%).
A passive balance of foreign trade in the amount of US$373.8 million was recorded.
Significant changes were achieved in the structure of exports as a result of an increase in the production of products that replaced imported goods and the diversification of industrial production.
Uzbekistan has trade relations with more than 129 countries of the world. The largest volume of its foreign trade turnover among them was recorded with China (17.5%), the Russian Federation (16.0%), Kazakhstan (7.4%), the Republic of Korea (6.5%), Turkey (5.7%), Afghanistan (1.7) and Germany (1.6%).
In addition, there is a strengthening of relations with neighboring states, a lot of work to develop relations in the socio-economic, commercial, industrial and cultural sphere with these countries.
In particular, in recent years there have been significant changes in the FTT with neighboring states, for example, such as Tajikistan and Kyrgyzstan. Over the past three years, the FTT has doubled with Kyrgyzstan and Tajikistan.
The presence of an active foreign trade balance with Kyrgyzstan, Tajikistan and Afghanistan can be considered as a positive result in the country’s foreign trade.
The largest volume of the FTT with other states (except neighboring countries) falls on China, Russia, Kazakhstan, the Republic of Korea and Turkey. Among the main partner countries, an active foreign trade balance is ensured only with Turkey.
Among the 20 major partner countries for foreign economic activity, there is also an active foreign trade balance with six countries, in particular with Afghanistan (US$48.3 million), Turkey (US$26.9 million), and Tajikistan (US$18.6 million), Kyrgyzstan (US$14.3 million), UAE (US$4.3 million) and Iran (US$2.3 million).
With the remaining 14 countries, a passive balance of foreign trade is maintained.
One third of the FTT volume falls on the CIS countries and, in recent years, there is a tendency to increase this indicator. This, in turn, indicates the expansion of foreign economic relations with the CIS countries.
As a result of measures taken by the government of the republic to strengthen cooperation with the CIS countries and comprehensive support for foreign trade, the growth rate of foreign trade turnover of the CIS countries, compared to 2019, reached 9.1% and their share in foreign trade turnover, according to the results of 2020, amounted to 33 , 7% (the share of the CIS countries, compared to 2018, in the total volume increased by 1.6% points)
The volume of foreign trade turnover of other states in January 2020 decreased (growth rate - 85.4%) and amounted to 66.3% of the total foreign trade turnover.
As you know, the development of international economic relations contributes to sustainable economic growth of exports in order to achieve certain results.
Reforms being implemented to increase the country’s export potential, state support for exporters and expand the range of export-oriented products, allowed to increase the number of subjects of exporters (their total number amounted to 1 954 units) and this brought the export volume up to US$1.28 billion (decrease, compared since 2019, amounted to 15.1%).
In the export structure, 82.2% is occupied by goods, which are mainly precious metals (38.1%), textiles (12.1%), energy and oil products (11.9%), food products (5, 1%) (mainly fruit and vegetable products (3.0%)), non-ferrous metals and products from them (5.5%), as well as chemical products (3.5%).
There is a difference in the direction of export of goods and services between the CIS countries and other foreign countries. Thus, 33.5% of exports to the CIS countries are primarily exported by services, followed by textiles and textile products, energy and oil products (in particular natural gas), as well as food products.
During the reporting period, the export of ferrous and non-ferrous metals, energy and oil products to the CIS countries increased most rapidly, a decrease was observed in the export of cotton fiber, machinery and equipment, as well as chemical products.
An analysis of the structure of exported goods and services in January 2020, sent to other countries, showed that, compared with January 2019, the volume of exports of cotton fiber, textile products, machinery and equipment, energy carriers and oil products.
Over the past three years, the volume of exports to the CIS countries has increased and their share in its total volume has increased from 19.7% in 2018 to 29.5% in 2020. Accordingly, the share in the total exports of other foreign countries amounted to 70.5%.
Compared with January 2018-2019, our main partners in the export of goods and services in foreign trade in January 2020 were such countries as the Russian Federation (13.3% of total exports), China (12.7%), Turkey (7.6%), Kazakhstan (4.3%), Afghanistan (3.8%), Tajikistan (2.3%) and Kyrgyzstan (2.0%). Their share in total exports exceeded 45.0%.
In 2020, among the seven major partner countries for the export of goods and services, the Russian Federation regained its place in terms of export share. The geography of partner countries for the export of goods and services, compared with the same period in 2019, increased from 110 to 117 countries.
The largest volume of exported goods among large partner countries is energy and oil products, chemical products and products from it, as well as food products.
The volume of export of services in January 2020 amounted to US$228.5 million, or 17.8% of its total volume, and increased by 13.5% compared to the same period in 2019. Due to 1.2-fold growth over the past three years, the share of services in total exports increased by 4.5% points. In the export of services, the lion’s share is transport services (50.9%) and travel (tourism) (39.2%).
The rest include telecommunication, computer and information services (4.4%), construction services (2.2%) and others (3.3%), in particular, such as government goods and services not elsewhere classified, financial services, etc.
The volume of export of fruits and vegetables in physical terms amounted to more than 72.8 thousand tons and, in value terms, exceeded US$38.4 million (growth rates, compared to the same period in 2019, amounted to 95.1% and 82.0%, respectively ) Of these, 55.6 thousand tons of vegetables were exported in the amount of US$21.0 million, as well as 8.7 thousand tons of fruits and berries in the amount of US$9.2 million (growth rate in value terms, compared to the same period in 2019 years, respectively, amounted to 170.1% and 68.2%).
The main export markets for fruits and vegetables are in Kazakhstan, Russia, Pakistan and Kyrgyzstan.
Due to the fact that the government pays considerable attention to the development of agriculture and horticulture, the quality and volume of exported goods are increasing from year to year. So, in January 2020, the share of fruits and vegetables in total exports amounted to 3.0%.
The largest volume in value terms of export of fruits and vegetables falls to Kazakhstan (26.1% of the total volume of fruits and vegetables), which exceeds the volume of exports to the Russian Federation by 2 times.
The increase in textile exports can directly be seen as a result of reforms to produce finished products and create added value in return for the production of raw cotton. For example, in January 2020, textile products were exported in the amount of US$155.2 million, which amounted to 12.1% of total exports and, compared with January 2019, it increased by 1.4 times.
In the structure of textile exports, the main share is cotton yarn (56.1%), as well as finished knitwear and garments (22.4%). In January 2020, more than 276 types of textile products were exported to 48 countries.
As a result of practical work to diversify the textile industry of the republic and stimulate the export of finished products, our country’s potential in this area is growing.
The largest share of textile exports is to the Russian Federation (US$60.0 million - 38.7%), China (US$38.9 million - 25.1%) and Turkey (US$19.8 million - 12.7%).
For the reporting period, imports amounted to US$1,660.1 billion (a decrease in growth rates compared to January 2019 amounted to 1.3%).
The main share in its structure is occupied by machinery and equipment, including parts and accessories (41.2%), chemical products and products from it (13.0%), as well as services (11.2%).
An analysis of the dynamics of imports of goods and services also showed that in January 2020, compared with January 2019, the volume of imports of goods decreased by US$40.3 million and amounted to US$1.47 billion, while import of services reached US$186.2 million.
The largest share of imports of energy and oil products (95.8%), ferrous metals and their products (67.9%), as well as food products (73.2%) falls on the CIS countries, while in other foreign countries the lion’s share falls on machinery and equipment (85.9%), chemical products and products from it (79.2%).
An analysis of the structure of imported goods and services in January 2020 also showed that, compared with January 2019, the share of imports of ferrous metals and products from them increased from 5.6% to 6.7%, and the share of imports of machinery and equipment, including parts and accessories, food products, energy and oil products, decreased from 42.5% to 41.2%, from 10.3% to 7.8%, from 4.7% to 4.3%, respectively.
Despite the absolute growth in the volume of imports of services against the background of a decrease in its total volume, over the past three years there has been a decrease in their share (3.5% points).
The main factor behind the decline in food imports is a significant decrease in demand for raw sugar (63.6%), margarine (65%), sunflower oil (23.3%) and flour (20.0%).
The decrease in the volume of imports of energy and oil products was due to a decrease in the volume of imports of crude oil and bitumen (a decrease of 40%).
In dynamics, a stable ratio of the share of imports with the CIS countries and other foreign countries remains, which, within, is the ratio of 37:63.
According to the results of the reporting period, China with the share of imports in the total volume of 21.1% and the Russian Federation, which, with the share of 18.1%, took the second place, kept first place among the major import partner countries.
In general, in January 2020, goods and services from 102 countries were imported to the Republic of Uzbekistan.
Seven major partner countries (People’s Republic of China, Russian Federation, Republic of Korea, Kazakhstan, Turkey, Germany and Italy) have a share of 69.3% of the total imports, which amounts to US$1.15 billion.
As the investment climate in the country improves and as a result of reforms implemented in this area, the growth in imports of machinery and equipment, as well as parts thereof, is natural. So, taking into account large volumes of investments from China, Korea, Russia, Germany and Turkey, a high share of these countries in the volume of imports of these products remains.
The volume of imports of services in January 2020 amounted to US$186.2 million, or 11.2% of its total volume, and increased by 10.8% compared to the same period in 2019. The main share in the import of services is travel (tourism-75.4%) and transport services (14.7%).
Other types of services include telecommunication, computer, information (4.9%) and other services (5.0%), as well as financial and business services.
According to the results of January 2020, the volume of imports of building materials in its total volume amounted to 5.0% and reached US$82.5 million.
The main share in its structure is wood and products from it (51.3%), glass and products from it (7.0%), cement (5.8%), as well as asbestos (1.8%).
In general, the volume of imports of building materials in January 2020, compared with 2019, decreased (a decrease of 15.8%).
The growth in imports of building materials, compared with previous years, is directly related to large-scale reforms in the field of improvement, in particular housing construction, reconstruction and improvement of settlements.
The FTT partnership with the above countries can be regarded as the result of visits by the President of the Republic of Uzbekistan over the past three years to 15 countries, in particular, visits and bilateral mutually beneficial agreements signed there with partner countries.