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The comprehensive development of the services sector is an urgent issue of ensuring sustainable development of the economy, effective employment and improving the living standards of the population.

Practice has shown that currently the developed and developing countries set the primary task accelerated development of the services sector for influencing the economic growth.

Figure 1

Main types of services according to the Program for Development of the Services Sector

The services sector covers all segments of the population and affects virtually all socio-economic processes taking place in the society, which determines the relevance and significance of this issue.

During the years of independence in Uzbekistan systematic work has been carried out to ensure the dynamic development of the services sector and services as one of the most important factors and directions for deepening structural transformations and diversifying the economy, increasing employment, income and quality of life of the country's population. In addition, this sector plays an important role in ensuring stable economic growth.

During the implementation of the main tasks and directions of the Program for Development of the Service Sector in 2010-2016 the volume of market services grew in 2.7 times and increased to 92.5 trillion soums. The volume of services rendered per capita over this period increased by 2.3 times and was 2.9 million soums (Table 1).

Table 1

Dynamics of key indicators of services sector in the Republic of Uzbekistan in 2010-2016









I. Volume of services,
trillion soums








growth to previous year, in %








growth to 2009, in %





2,1 t.

2,3 t.

2,7 t.

II. Volume of services rendered per capita, thousand soums









Currently, more than 16.5 thousand large organizations (including non-profit organizations providing market services) and more than 126,0 thousand small businesses are involved in the services sector.

Figure 2

Share of persons employed in the services sector by types of activities

The dynamics of the development of the sector in 2010-2016 testifies to the positive development trends in practically all regions.

In 2016 leading position occupied Namangan region, Kashkadarya region, Djizhak region and the city of Tashkent. Ensuring high growth rates in the city of Tashkent is primarily due to the increase in real incomes of the population, the development of industries for the production of final consumer products, which gives a cumulative effect for the development of various types of services (Figure 3).

Figure 3

Growth rates of production of services by regions in 2016
(in percentage terms)

 The number of the population affects the average per capita indicator of development of the services sector. For example, in Navoi region and Bukhara region, where the population density is relatively low, average per capita indicators look better than in densely populated regions: Kashkadarya region, Namangan region, Fergana region, Andizhan region, and Samarkand region (Figure 4, 5).

Figure 4

Rating of regions by volume of services per capita in 2010
(thousand soums)

Figure 5

Rating of regions by volume of services per capita in 2016
(thousand soums)

 The analysis shows that in the industrially developed regions (excluding the extractive industry) – Navoi region, Tashkent region and the city of Tashkent - high per capita indicators of the services sector were marked in comparison with Samarkand region, Namangan region, Khorezm region, Djizhak region and Surkhandarya region (Figure 6).

Figure 6

Volume of services rendered per capita by regions in 2016
(thousand soums)

Figure 7

Comparison of growth rates of services per capita by regions

Along with this, in the economically developed regions of the republic, there is a tendency to increase the most significant types of services (Figure 8).

Figure 8

Share of regions in total volume of transportation services

Over the years of implementing the Program for Development of the Services Sector in the Republic of Uzbekistan from 2010 to 2016 the contribution of the sector to GDP has increased. So, if in 2010 the share of services in GDP was 46.9 percent, then in 2016 (preliminary data) it reached the level of 49.5 percent (Figure 9).

Figure 9

Share of services, as % of GDP

The steady growth of demand for various types of services by the population and the practical measures taken by the state to develop the accompanying infrastructure (social, transport, communication, trade, etc.) ensured the accelerated development of all branches of the services sector (Figure 10).

Figure 10

Growth of separate types of services in 2010-2016

For example, trade from a primitive distribution mechanism has become an active participant in the process of shaping user-oriented market demand. Currently, trade services form a significant part of the total volume of services provided in the economy (27.4 trillion soums) (Figure 11), having increased in general for the period from 2010 to 2016 in 3.1 times.

Figure 11

Ratio of the volume of trade and other services in 2016
(trillion sum)

Communications and informatization services are developing dynamically, their total volume has increased by 4.6 times. The implementation of national programs for the reconstruction and development of the telecommunications network, computerization and information technologies leads to the growth in wireless telephone services, an increase in the number of cellular subscribers and points of collective access to the Internet (Figure 12, 13).

Figure 12

Growth rate of mobile communication services

Figure 13

Growth in number of subscribers and volume of Internet services

According to the results of 2016, the provision of mobile communication per 100 people was 65.3 units. According to the Mininfokom data, the bandwidth of international data transmission channels was 54980 Mbit/s (2510 Mbit/s in 2010). Currently, a large-scale program for a full transition to digital television is being implemented (Figure 14).

Figure 14

Bandwidth of international data transmission channels

In 2010 - 2016 the volume of financial services increased by 4.2 times. Such growth was achieved as a result of improving the financial activities of commercial banks, consisting in increasing their capitalization and financial sustainability. Other factors that have influenced the growth of financial services are an improved mechanism of lending to small businesses and private entrepreneurs, expanding lending to prospective investment projects, and expanding the regional network of financial institutions with the introduction of the latest electronic payment technologies (Figure 15).

Figure 15

Growth of financial services

Reforming the health care system, increasing the level of medical service for providing high-tech medical care, and widespread introduction of advanced foreign experience into healthcare practice allowed to increase the growth of health services by 4.9 times (Figure 16).

Figure 16

Volumes of services in public health
(billion soums)

Currently, the production of services is differentiated depending on the level of income, tastes and preferences of consumers.

Along with the growth in volumes, the structural relations of market services have changed. In the total volume the share of transport services has decreased, but that of new market services has increased.

In particular, in 2010 - 2016 the share of transport services decreased from 36.2 percent to 28.2 percent, that of communication and information services from 8.0 percent to 6.8 percent. Along with this, the share of trade services increased from 25.4 percent to 29.6 percent, financial services from 10.2 percent to 10.7 percent, education services from 2.9 percent to 3.5 percent, accommodation and food services from 1,1 percent to 3.3 percent, real estate services from 3.1 percent to 3.7 percent. In the total volume of services the share for repair of computers and household goods, architecture, engineering, technical testing and analysis and other services remained unchanged (Figure 17, 18).

Figure 17

Figure 18

 The dynamic development of the services sector is due to the expansion of the production of services by small businesses and private entrepreneurs. As part of the implementation of the Program for Development of the Services Sector, significant volumes of preferential credits were granted to business entities for the technological equipment of newly created enterprises for the provision of services. As a result, the share of small business in the total volume of produced market services increased from 53.9 percent to 61.4 percent (Figure 19).

Figure 19

Share of small business in the services sector in 2010-2016

Further ensuring sustainable economic growth through the creation of new jobs, improving investment, taxation, monetary and credit policy, scientific and technical policy and the development of small business using new information and communication technologies will contribute to qualitative structural shifts in the branch structure of market services.

This will allow to form a rational structure of production and consumption of services in Uzbekistan, to ensure a further increase in the level and quality of life of the population.

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