Uzbekistan Initiation: Value Hidden in Plain Sight

Frontier and emerging markets (Vietnam)

Dylan Waller

Cross Asset Strategy

Multiple Countries / Cross Asset Strategy

Uzbekistan is well-positioned as a regional stand out within Central Asia, due to its population of 33 million ( 72 million total in Central Asia), favorable demographics and comparatively lower wages. One of the major catalysts for the economy and stock market includes continued market reforms and the eventual privatization of significant names on the country's stock market. The country plans to privatize 20 notable names in the coming years, as a part of its long term privatization plan.Uzbekistan's GDP growth is projected to reach 5.2% in 2019 and 5.5% in 2020, according to the ADB, which is much faster than rates seen in other South Asian and Southeast Asian peers.Uzbekistan's current account deficit reached 7% of GDP during 2018, while the economy previously had a current account surplus during every year between 2009-2017. Uzbekistan's stock market cap to GDP is only 5.3%, which is a far cry from the levels seen in other frontier and emerging markets ( 29% of GDP average within frontier markets).

Uzbekistan is well-positioned as a regional stand out within Central Asia, due to its population of 33 million ( 72 million total in Central Asia), favorable demographics and comparatively lower wages. One of the major catalysts for the economy and stock market includes continued market reforms and the eventual privatization of significant names on the country's stock market. The country plans to privatize 20 notable names in the coming years, as a part of its long term privatization plan.Uzbekistan's GDP growth is projected to reach 5.2% in 2019 and 5.5% in 2020, according to the ADB, which is much faster than rates seen in other South Asian and Southeast Asian peers.Uzbekistan's current account deficit reached 7% of GDP during 2018, while the economy previously had a current account surplus during every year between 2009-2017. Uzbekistan's stock market cap to GDP is only 5.3%, which is a far cry from the levels seen in other frontier and emerging markets ( 29% of GDP average within frontier markets).

Uzbekistan: Outlook in the 2020s