Uzbekistan

Date: 5 May 2011

The event will be held in Tashkent, Uzbekistan, with the participation of distinguished participants from academia, government, civil society, international organizations, and the press. The list of well known participants making opening remarks, presentations and commenting on the publication includes:

Janna Fattakhova
Senior Research Coordinator
Center for Economic Research

Nozima Rakhmankulova
Leading Research Officer
Center for Economic Research

Lativ Norov
Tasks Manager
Center for Economic Research


Country briefing note      <download pdf file>

High and steady economic growth continues

•  The economy has maintained high and steady growth for several years, expanding by an estimated 8.5% in 2010, up slightly from 8.1% previous year.

•  Growth was broad-based, supported by both the industrial and services sectors. Industrial output grew by 8.3% and retail trade by 14.7%, with the construction sector continuing to expand from public infrastructure outlays. The agricultural sector also contributed positively to economic growth, growing by 6.8%.

Inflation remains high, albeit lower than previous years

•  Average annual inflation was an estimated 9.3% in 2010, lower than previous years.

•  Increased public sector wages and welfare benefits were among the contributing factors. Utility prices for heating and electricity were also raised in 2010, putting upward pressure on inflation.

Public expenditure continues to support the economy and social development

•  With large revenues from gas exports, the Government has kept its budget in surplus for most of the past decade, but increased spending in infrastructure, health care and rural development as well as increased public sector wages narrowed the surplus in 2010. Revenue from corporate and income taxes also fell as tax rates were reduced to encourage economic activity.

•  The Central Bank of Uzbekistan allowed the som to depreciate in order to support exports and the country's competitiveness in both the global and regional markets.

•  The banking system received a new improved rating from the Moody's ratings agency from “negative” to “stable” in 2010.

Strong growth in trade, remittances, and foreign investment

•  Current account surplus remained high, at around 18% of GDP, in 2010 owing to a large trade surplus and increased remittances from Kazakhstan and the Russian Federation .

•  Rising global prices of principal export commodities, including gas, gold and cotton, increased export revenues by more than 22% in 2010. Hydrocarbons remain an important source of export earnings.

•  Meanwhile, foreign direct investment in infrastructure projects and the hydrocarbon sector continued to rise, particularly from Chinese and Russian joint ventures.

Future outlook and policy challenges

•  In 2011, the economy is expected to grow steadily by 8.5%.

•  The Government continues to support the agricultural sector and invest in rural development. Continued efforts are needed to pursue inclusive economic growth and diversify the economy so as to reduce heavy reliance on the energy and commodity sectors.