Uzbekistan's poverty rate, when compared to the international figures, based on the upper-middle-income poverty line, halved since 2015, according to the World Bank's global poverty data. The rate dropped by 19 percentage points, from 36% in 2015 to 17% in 2022, outpacing the rest of Europe and Central Asia. Additionally, using national measures of monetary poverty, Uzbekistan's national poverty rate declined from 17% to 11% between 2021 and 2023, with around 1.6 mn people moving out of poverty.
It is important to note that the World Bank's March 2024 update on global poverty numbers includes Uzbekistan's data for the first time.
The poverty reduction was primarily driven by an increase in household incomes, wages, and improved social protection programs. Household income growth accounted for 60% of the progress in reducing poverty, with social benefits playing a significant role, particularly improvements in pensions.
Until spring 2024, Uzbekistan lacked internationally comparable poverty estimates, hindering the assessment of the effectiveness of its social and economic reforms. However, since 2017, the country has been participating in the International Comparison Program, a global initiative managed by the World Bank and the United Nations Statistical Commission. This participation led Uzbekistan to revamp its poverty measurement system.
In 2021, with assistance from the World Bank, Uzbekistan adopted a new methodology and set a national target to halve the poverty rate by 2026. This move, combined with new household survey data, enables both national and international assessments of poverty reduction progress in the country.
Uzbekistan, classified as a lower-middle-income economy, reduced its poverty rate to 5% by 2022 using the lower-middle income poverty line ($3.65 per person per day in 2017 PPP). As Uzbekistan aims to become an upper-middle-income country by 2030, the upper-middle-income poverty line ($6.85 in 2017 PPP) becomes more relevant.
In the most recent period (2022-2023), while the incomes of the poorest 10% increased by 6%, the incomes of the richest 10% grew by over 30%. This trend resulted in an increase in the Gini Coefficient, a measure of income inequality, from 0.31 in 2022 to 0.35 in 2023.
The rise in inequality somewhat mitigated the overall impact of poverty reduction efforts. Without rising inequality, poverty could have declined by 5.5 percentage points instead of the observed 3.1 percentage point decline during this period.
To sustain the progress in poverty reduction, growth needs to benefit all citizens. More jobs, health and education investments, and targeted social assistance programs can contribute to further poverty reduction in Uzbekistan. These measures will ensure that economic growth benefits all population segments.
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