Tashkent, Uzbekistan (UzDaily.com) — By the end of 2024, the size of Uzbekistan’s unobserved economy surpassed 505 trillion soums, according to the Statistics Agency under the President.

The unobserved economy encompasses economic activities that official statistics cannot fully account for. It includes both the informal sector and the shadow economy.

The informal economy consists of small businesses and services that operate without official registration. Examples include home-based clothing repairs, unlicensed taxi services, or street vendors selling vegetables without permits.

The shadow economy, on the other hand, refers to legal but concealed economic activities. Entrepreneurs, for instance, may deliberately underreport their income to reduce tax liabilities, while employers might pay salaries off the books.

As previously reported, Uzbekistan’s gross domestic product (GDP) grew by 6.5% in 2024, reaching 1.45 quadrillion soums (approximately US$115 billion).

The unobserved economy accounted for 34.8% of GDP, equivalent to 505.65 trillion soums (nearly US$40 billion). Of this, 383.64 trillion soums (or 26.4% of GDP) stemmed from the informal sector, while 122 trillion soums (or 8.4%) belonged to the shadow economy.

The largest share of the unobserved economy is concentrated in agriculture, forestry, and fishing, accounting for 63.6%.

A significant level of unaccounted activity is also observed in construction (41.3%) and services (40.1%), while the industrial sector accounts for 8.9%.