Speaking about issues of macroeconomic stability, the President noted the need to curb inflation at a level below 10%, achieve economic growth next year at least 5%, and in subsequent years no more than 2%, to keep the budget deficit no more than 5.4% of GDP. Touching upon the topic of the foreign exchange market, the President stated the need to de-dollarize the economy, and, in particular, reduce the share of foreign currency loans from the current 50% to 45% next year, and increase the share of international bonds issued in national currency from the current 25% to 40%.
Macroeconomic stability is the cornerstone of a country's successful sustainable economic growth. The elimination of such destructive factors as excessive inflation, public debt and excessive dollarization of the economy will help to level the playing field for economic entities and create stability in the expectations of economic entities, which is extremely important for doing business. The goal of preventing the budget deficit from inflating is due to the need to increase the efficiency of the use of public financial resources, and support the private sector, which is more efficient in managing resources. In addition, the measures announced by the President to build a more responsible approach to increasing external debt will also contribute to improving the efficiency of external borrowing, reducing the debt burden on the budget, and implementing really needed infrastructure projects.
Another important issue raised by the President during his speech is ensuring food security problem. This includes supplying the domestic market with all the necessary food products, preventing sharp fluctuations in food prices and food products shortages. In 2020, in response to the challenges of the pandemic, some countires imposed bans on food exports. Uzbekistan is an importer of such important goods for the population as wheat, flour, vegetable oil and raw materials for its production, raw materials for the production of sugar. Naturally, export restrictions imposed by other countries have created additional difficulties in providing the population with the necessary goods. However, thanks to the measures taken in due time, managed to avoid the domestic market shortage of essential goods. The following year, the measures aimed at achieving food security, will be continued, in particular, the President announced the extension of the whole year exemptions for customs duties on import of basic foods that will also help to prevent a possible shortage of food and the sharp market fluctuations.
The Center for Economic Research and Reforms