ADB projects GDP growth for Uzbekistan to be 5.6% in 2025

UZA News

The Asian Development Bank gave a presentation in Tashkent, focusing on Uzbekistan.

During the presentation, ADB’s Country Director for Uzbekistan Kanokpan Lao-Araya, Rector of the Central Asian University for the Study of Environment and Climate Change (Green University) Jasur Solikhov and others discussed the country’s ongoing reforms aimed at promoting economic growth.

According to ADB’s flagship report, the expected economic growth in Uzbekistan will decline in 2024 due to the impact of rising prices on household income.

ADB’s Asian Development Outlook (ADO) for April 2024 predicts a GDP growth rate of 5.5% in 2024, followed by a slight increase to 5.6% in 2025. This slowdown is attributed to the effects of higher administered prices on household income, leading to a decrease in consumer demand.

Kanokpan Lao-Araya, ADB’s Country Director for Uzbekistan, stated that the country experienced significant economic growth last year, driven by strong performance in the industrial and agricultural sectors. This was supported by a favorable investment climate and a strategic tax exemption policy for essential food items, along with tight monetary policies that contributed to a decrease in inflation.

Despite the projected slowdown in 2024, the overall economic outlook for Uzbekistan remains positive. The services and agricultural sectors are expected to see slower growth, while private consumption and investment may also lose some momentum. Inflation rates are predicted to remain stable due to ongoing structural energy reforms and monetary tightening measures.

The event also addressed issues related to fiscal policies, revenues, and budget deficits. It was noted that a slowdown in growth rates is expected in the services and agricultural sectors, while inflation rates are projected to remain stable due to the balancing effect of structural energy reforms and monetary policies.

Nasiba Ziyodullayeva, UzA

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