Central Bank projects 15% annual growth in Uzbekistan’s remittances

The Central Bank of Uzbekistan forecasts an annual increase of 10–15% in remittance inflows, expecting total transfers to reach $20 billion by 2027. Eldor Zokirov, Head of the Monetary Policy Department, shared these projections during a media dialogue on November 26, according to Spot.

In the first nine months of 2024, remittances from abroad amounted to $11.3 billion. By year-end, the Central Bank anticipates total inflows of $14.6 billion, a 25–30% rise from last year’s figures. This surge is attributed to economic growth in Russia, an increase in transactions from other countries, and higher wages for labor migrants.

The forecast indicates steady growth: $16.1 billion in 2025 (9–11% increase), $17.6 billion in 2026 (9–12%), and $19.9 billion in 2027 (10–15%).

Zokirov highlighted that rising wages in Russia, driven by a labor shortage, significantly boost remittances. This trend compensates for the potential depreciation of the Russian ruble, which remains above 100 rubles per dollar.

Additionally, Uzbek labor migrants are increasingly shifting from the construction industry to the service sector, which traditionally offers higher salaries. The Central Bank also emphasized the positive impact of diversifying labor migration, which is expected to further enhance remittance inflows.

Russia remains the dominant source, accounting for over 77% of total transactions during the first nine months of 2024. Other significant contributors include Kazakhstan, South Korea, the United States, and Turkey. Notably, remittances from the United Kingdom, Poland, and the UAE have shown substantial growth.