Uzbekistan Targets 4.5% Poverty, Unemployment Rates and 1 Million New Jobs in 2026

Uzbekistan Sets Ambitious Economic Targets for 2026

Tashkent, Uzbekistan – President Shavkat Mirziyoyev chaired a videoconference meeting on January 23, 2026, to review the nation's economic performance in 2025 and establish key objectives for the upcoming year. The meeting underscored Uzbekistan's commitment to further reducing poverty and boosting employment, setting a target to lower both the poverty and unemployment rates to 4.5% and create 1 million permanent jobs in 2026.

Review of 2025 Economic Performance

The President highlighted significant economic achievements in 2025, with the country's economy growing by a robust 7.7%, surpassing initial forecasts. The Gross Domestic Product (GDP) exceeded $147 billion, and foreign investment reached $43 billion. Exports also saw substantial growth, totaling $33.8 billion. Inflation was successfully brought down from 9.8% in 2024 to 7.3%.

Crucially, efforts in poverty reduction yielded positive results, with the poverty rate decreasing from 8.9% to 5.8%. Similarly, the unemployment rate fell from 5.5% to 4.8%. These measures collectively helped lift 366,000 families out of poverty, and 1,435 mahallas (neighborhoods) were officially recognized as 'poverty-free areas' during the year.

2026 Objectives and Strategic Initiatives

For 2026, declared the 'Year of Mahalla Development and Social Welfare,' the government has outlined several ambitious targets:

• Provide permanent employment to 1 million people.
• Lift an additional 181,000 families out of poverty.
• Increase the number of poverty-free mahallas to 3,500.
• Reduce both the poverty and unemployment rates to 4.5%.
• Increase incomes for 4 million citizens and integrate 1 million informal workers into the formal economy.

To achieve these goals, Uzbekistan plans to allocate 20 trillion soums ($1.65 billion) for regional infrastructure improvements, with 12 trillion soums ($993 million) specifically directed to 'challenging' districts and communities. Furthermore, 450 trillion soums in loans will be channeled into the economy, including 140 trillion soums to support small and medium-sized projects at the mahalla level. Significant investment projects totaling 675 trillion soums are planned, with 380 trillion soums earmarked for construction, including the development of 140,000 apartments, expected to generate tens of thousands of jobs.

Focus on Local Governance and Sectoral Development

The President emphasized the critical role of mahallas in the effective implementation of reforms, stating that 'the mahalla clearly shows where reforms are effective and where they are not.' Local governors (khokims) will be held personally responsible for ensuring employment growth and income increases within their regions. Strategies include strengthening community-level initiatives, expanding vocational training, and fostering entrepreneurship.

The development of the services sector, particularly tourism, is also a key focus, with planned infrastructure improvements in 150 mahallas identified for their high tourism potential. These initiatives are part of the broader 'New Uzbekistan Development Strategy 2022-2026' and the 'Uzbekistan 2030' strategy, which aims to achieve upper-middle-income status and eliminate absolute poverty by 2030.