Uzbekistan has witnessed a significant surge in its foreign trade turnover during the first ten months of 2023, marking a substantial increase of $10.26bn, or 25.2%, compared to the same period in the previous year. According to the report from the Statistics Agency under the President, the country's foreign trade reached $50.93bn, driven by a notable uptick in both export and import activities.
Export Dynamics
Exports experienced a remarkable growth of 29.1%, reaching $20.47bn, while imports also surged to $30.5bn, a 22.7% increase. However, the widening trade deficit, exceeding $10bn, was partially offset by a sharp rise in gold exports, which reached a record-breaking $6.87bn, contributing to 33.6% of the country's total exports.
The surge in gold exports played a crucial role in narrowing the trade deficit, as other sectors faced challenges. Industrial goods' share in exports declined from 23% to 16.5%, while machinery and transport equipment increased from 4.8% to 5.4%. Excluding gold, overall exports grew by a modest 5.6%, highlighting the crucial role of the precious metal in balancing the trade situation.
Export Categories
The export landscape revealed mixed dynamics. Sales of vegetables and fruits, grains, oil and petroleum products, automobile accessories, office machines, and telecommunication equipment experienced positive growth. However, textile product exports decreased by 3.2%, and certain sectors such as gas, electricity, and non-ferrous metals saw notable declines.
Import Trends
On the import front, food supplies maintained a high level, with significant increases in the import of grains, sugar, coffee, tea, cocoa, spices, vegetable oils, fats, meat, vegetables, fruits, and dairy products. The import of oil and petroleum products, coal, and coke also rose, indicating a diverse and dynamic import market.
Surges in imports were observed in the automotive sector, with imports of cars, spare parts, and aircraft experiencing substantial growth. Notably, fertilizer imports increased significantly, possibly linked to decreased production at Uzkimyosanoat enterprises, prompting the import of ammonia from Russia to cover losses.
Challenges in the Pharmaceutical Sector
One notable concern is the decline in the import of medical and pharmaceutical products to $1.29mn, a 1.7% decrease. Reports suggest that the introduction of drug labeling has led to difficulties in finding imported medicines, coupled with a significant increase in their prices, impacting consumers and potentially affecting the overall healthcare sector.
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