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THE IMPACT OF UZBEKISTAN'S FOREIGN DEBT ON THE GROSS DOMESTIC PRODUCT 
 
Nishonkulov Shohruhxon 
3
rd
 year student of Economics of Kokand University, 
Gafurov Khurshid 
Lecturer of the Department of International Tourism
and Economy of Kokand University 
Abstract:
This paper examines the impact of Uzbekistan's foreign debt on its Gross 
Domestic Product (GDP). The country's debt dynamics, economic indicators, and policy 
responses are analyzed to understand the debt's implications on Uzbekistan's economy. 
Uzbekistan's external debt has increased significantly over the last decade, and the debt-to-
GDP ratio has risen, indicating a growing debt burden. The government has implemented 
policy responses to manage the debt burden, including economic reforms and debt 
management practices. While foreign borrowing has enabled the government to finance 
infrastructure projects, it has also increased the debt service obligations, reducing the 
government's ability to invest in social sectors. The paper concludes that it is essential for the 
government to continue implementing sound economic policies to ensure debt sustainability 
and promote long-term economic growth. 
Keywords:
Uzbekistan, foreign debt, Gross Domestic Product, debt service obligations, 
debt-to-GDP ratio, debt sustainability, economic growth, economic reforms, debt management 
practices, infrastructure projects, social spending, human development, social welfare, policy 
responses. 
Introduction: 
Uzbekistan, a Central Asian country, has witnessed significant economic 
growth in recent years. However, this growth has been accompanied by an increase in foreign 
debt. This paper aims to explore the impact of Uzbekistan's foreign debt on its Gross Domestic 
Product (GDP). In doing so, it will examine the country's debt dynamics, economic indicators, 
and the policy responses that Uzbekistan's government has taken to manage its debt. 
Uzbekistan is a landlocked country in Central Asia. It is the most populous country in the 
region, and its economy is heavily dependent on exports of cotton, gold, natural gas, and other 
commodities. Since the collapse of the Soviet Union in 1991, Uzbekistan has been working to 
transition from a centrally planned economy to a market-oriented one. 
As part of this process, Uzbekistan has taken on significant foreign debt to finance 
infrastructure projects and other development initiatives. In this article, we will examine the 
impact of Uzbekistan's foreign debt on the country's gross domestic product (GDP). We will 
explore the causes and consequences of this debt, and consider the prospects for Uzbekistan's 
economic future. 
Debt Dynamics: 
Uzbekistan's foreign debt has been on the rise over the last decade. The 
country's external debt increased from $8.4 billion in 2010 to $22.4 billion in 2020. The 
increase in external debt was primarily driven by borrowing from international financial 
institutions such as the World Bank, the Asian Development Bank, and the Islamic 
Development Bank. Uzbekistan has also issued sovereign bonds in the international market to 
finance its infrastructure projects. 

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