Think Tanks of Uzbekistan and the UK to Collaborate on the Implementation of the Global NiGEM Model

It is worth noting that the NiGEM model is widely used by leading central banks, governments, and financial institutions worldwide for economic forecasting, scenario analysis, and stress testing. Currently, it is applied in 30 European countries, 6 American countries, 12 Asian and Australian countries, as well as 2 African countries. With over 7,500 macroeconomic variables, NiGEM enables the analysis of complex economic processes and their impact on national economies.

The implementation of NiGEM is being carried out as part of the Public Research Institutes Modernization Program, aimed at modernizing state research institutions and improving strategic planning, with the support of the World Bank and the Agency for Innovative Development.

For Uzbekistan, the introduction of this model will create new opportunities for forecasting economic growth, assessing the impact of changes in monetary and fiscal policies, and analyzing external shocks. In the context of global economic instability, this initiative is particularly relevant.

Highlighting the significance of this step, the CERR Director emphasized that cooperation with a leading UK think tank like NIESR will provide Uzbekistan with access to cutting-edge macroeconomic modeling tools.

“The NiGEM model will allow us to analyze global economic trends more deeply and assess their impact on the national economy, ultimately improving the quality of decision-making,” noted Obid Khakimov.

Additionally, Associate Director for Model Development at NIESR, Ian Hurst, expressed support for the initiation of the partnership with CERR and the implementation of the NiGEM model in Uzbekistan. He emphasized that this initiative would significantly strengthen the country’s analytical capacity and lay a solid foundation for long-term collaboration in economic research.

Discussing future plans, both parties noted that the first stage of cooperation would involve integrating national macroeconomic data into the model, allowing it to account for the specific characteristics of Uzbekistan’s economy. Subsequently, the model will be calibrated and adjusted in line with the country’s economic conditions.

An essential part of the process will be training CERR specialists, equipping them with the necessary expertise to work with the model effectively.

In conclusion, both sides highlighted that the signed agreement opens new horizons for macroeconomic analysis and forecasting in Uzbekistan. The use of the NiGEM model will enable the development of more precise and well-founded economic strategies.

Reference: NIESR is one of the oldest independent research organizations in the United Kingdom, specializing in economic and social analysis. The institute develops macroeconomic models, conducts research, and provides advisory services to governments and international organizations.

Sector for the Study of Macroeconomic Policy Coherence and Forecasting