World Bank sees two years of Uzbek growth of around 5.5%

By Muzaffar Ismailov in Tashkent October 9, 2023

Uzbek GDP is expected to expand by 5.5% in 2023 and 5.6% in 2024, according to a revised economic update from the World Bank.

The forecast sees Uzbekistan this year trailing Tajikistan for growth, with the Tajiks expected to post 6.5%, but stay ahead of Kazakhstan (4.5%) and Kyrgyzstan (3.5%).

Main risk factors to Uzbek growth are considered to be the slowing of the Russian economy, the persistence of pro-inflationary factors and tough world financial conditions. Higher gas, gold and copper prices, as well as productivity growth, could be significant pluses.

Uzbekistan posted growth of 5.6% for 1H23. A significant increase in exports (+16%), primarily on shipments of cars and agricultural products and robust tourism, compensated for a decline in remittances.

The Uzbek som, meanwhile, has moved into difficult territory, having lately depreciated against the dollar by 8%.

The budget deficit has increased to 5.7% of GDP due to social spending growth and energy subsidies, combined with excise tax and VAT cuts.

One of the main long-term risk factors for Central Asia as a whole is climate change and the threat of inadequate water resources that could hit intensive economic sectors such as agriculture and hydropower.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

COMMENT: How Uzbekistan is suddenly emerging as a global fintech and e-commerce leader

With its 37mn inhabitants, Uzbekistan is the most populous country in Central Asia – a landlocked region that is comprised of five countries formerly part of the Soviet Union. Until 2017 Uzbekistan ... more

Uzbekistan's leading PVC maker Akfa Aluminium receives first credit rating

Akfa Aluminium, the largest manufacturer of PVC and aluminium profiles in Uzbekistan and one of the leading industrial companies in Central Asia, has received its first-ever credit rating from ... more

Uzbek diaspora leader sentenced to four years in penal colony in Russia over social media post on eggs

Usman Baratov, head of the interregional Uzbek community "Vatandosh," has been sentenced by a Moscow region court to four years in a general regime penal colony for inciting hatred and enmity, ... more

Follow Us On

Most Read

  1. Elon Musk's Starlink is turning the tide of the Ukraine War in favour of Russia
    7 days ago
  2. Central and Southeastern Europe defies German economic weakness
    5 days ago
  3. BRICS members hoping to develop a digital "BRICS Pay" cryptocurrency international trade system
    5 days ago
  4. Kazakhstan has no plans to join BRICS, says Astana
    6 days ago
  5. Aggressive “furry movement” teens made up as cats and dogs face crackdown in Uzbekistan
    6 days ago
  1. PROFILE: Remigijus Zemaitaitis, Lithuania's new radical-right leader
    15 days ago
  2. RAGOZIN: What is Zelenskiy’s real Plan B?
    27 days ago
  3. LONG READ: Europe has lost its competitive edge
    23 days ago
  4. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    6 months ago
  5. The AMOC Gulf Stream current may collapse as soon as 2025, says study
    2 months ago

Reports

Dismiss