Uzbek Migrants Boost Economy Beyond Gold Exports
The Impact of Labor Migrants on Uzbekistan’s Economy
Today, approximately 2.5 million Uzbeks work abroad, sending back a significant amount of money to Uzbekistan that surpasses the revenue from gold exports, contributing over 14% to the country’s GDP. This influx of remittances plays a crucial role in the economy, covering household expenses and boosting domestic demand.
According to the International Organization for Migration (IOM), there are over 281 million migrants globally, with a threefold increase over the past 50 years. These migrants leave their countries in search of better opportunities, leading to a rise in remittances sent back home. Between 2000 and 2022, remittances grew by 650%, reaching $831 billion.
The United States, Germany, and Canada have been popular destinations for migrants in recent years, with the U.S. hosting over 50 million international migrants. Saudi Arabia and the UAE also remain attractive destinations for migrant workers, contributing significantly to global remittance volumes.
In Uzbekistan, over 2.3 million labor migrants have gone abroad, historically heading to countries like Russia, Kazakhstan, Turkey, and South Korea. However, changing economic conditions and regulations have led to a shift towards new destinations such as the UK, Germany, and the UAE.
Remittances to Uzbekistan totaled $11.4 billion in 2023, accounting for over 11.2% of the nation’s GDP. These funds are essential in covering household expenses and healthcare, driving economic growth and meeting foreign exchange needs.
The high number of Uzbek labor migrants can be attributed to factors such as economic transition, declining agricultural employment, population growth, and low incomes. As Uzbekistan continues to grapple with providing employment for its growing workforce, labor migration remains a key source of income for many households.
Overall, the role of labor migrants in Uzbekistan’s economy is significant, providing a lifeline for many families and helping to bolster the nation’s financial stability in the face of economic challenges.
