Avazbek Sodikov

(Director, Institute of Forecasting and Macroeconomic Research (IFMR) Under the Cabinet of Ministers of the Republic of

Uzbekistan)

Author

Avazbek Sodikov is Director of the Institute of Forecasting and Macroeconomic Research (IFMR) under the Cabinet of Ministers of the Republic of Uzbekistan. In 2007-2008, he served as Deputy Director of the Center for Social and Economic Research (CSER) under the Cabinet of Ministers. He was Senior Consultant at the Service of the State Counselor to the President on socio-economic policy in 2005- 2007. In 1998-2000, he was Senior Consultant of the Center of Information Analytics at the Council of the President of the Republic of Uzbekistan 1998-2000. In 1991-1995, he was a teacher at Tashkent State University. In 1983- 90, he was the head of a department at Uzbekistan State Agency for Press.

Abstract

Uzbekistan's economy in recent ten years features a high stability, which contributed to a huge increase in the nation's economic development. The GDP growth rate in the recent ten years increased 8 percent annually, the total GDP increased by 1.3 times, and GDP per capita increased by 1.6 times. The stable growth does not only depend on the extensive model (the ever-increasing exploitation of hydrocarbon raw material when the prices of oil, natural gas and other energies remain high), but also on the reform of market economy, profound adjustment of economic structure and foreign investment. Foreign direct investment (FDI) has played a vital role. FDI facilitated the research of new advanced technology and modern way of production. Foreign investment in Uzbekistan in recent five years grew 9 percent annually, one of the highest and most stable in the world, especially given the global financial crisis and its aftermath. China and Uzbekistan have established a close and efficient relationship since the ancient Silk Road. The cooperation between the two covers various areas, especially on the economic and trade front. For the past six years, the trade volume between the two increased by nearly five times, reaching US$5.2 billion in 2013. China is currently Uzbekistan's second largest trade partner and largest investor. Chinese President Xi Jinping paid a state visit to Uzbekistan in September 2013, witnessing the signing of 31 documents which amounted to US$15 billion. Among them is China's FDI in Uzbekistan totaling US$7.7 billion, including US$1.3 billion of Chinese companies' direct investment, US$6.1 billion of Chinese banks loan, and US$300 million national scholarship. An increasing number of Uzbekistan companies are attracting Chinese investment. A total of 466 companies in Uzbekistan have Chinese investment, and 77 of them are wholly Chinese. Another 71 Chinese companies have set up offices and agencies in Uzbekistan, which run in various areas such as energy, transportation, telecommunication, machine manufacturing, light industry, heavy industry, construction industry, agriculture and finance.