The Balance of Payments of The Republic of Uzbekistan and Its Current State Analysis

Abstract

The balance of payments is a critical macroeconomic instrument that reflects a country's financial interactions with the rest of the world. This study focuses on the structure and current state of the Republic of Uzbekistan’s balance of payments, providing a detailed assessment of its core components and recent trends. The analysis covers the current account—including trade in goods and services, primary income, and secondary income—as well as the capital and financial accounts. Recent shifts in global trade and regional integration have influenced Uzbekistan’s external economic indicators, particularly in terms of trade balance, investment inflows, and remittance dynamics. The research identifies the persistent trade deficit, mitigated in part by strong secondary income from labor migrants abroad, as a key structural feature of the country’s external position. In addition, the study explores the effectiveness of monetary and fiscal policy in stabilizing external accounts during ongoing economic reforms and liberalization. The analysis provides insight into how institutional changes and diversification efforts are shaping the evolution of Uzbekistan’s international economic relations. Overall, the paper highlights the importance of structural modernization and balanced foreign trade strategies to strengthen the sustainability of the national economy and ensure long-term external stability.