Uzbekistan's GDP growth will be 4% in 2021 and 5% in 2022, according to the ADB's annual report.
Economic growth in Uzbekistan is expected to recover this year and in 2022 industry, services and investment will recover from the coronavirus (COVID-19) pandemic, but risks of a extended pandemic and uncertainty remain, the Asian Development Bank (ADB) reports.
“While the pandemic and related restrictions have reduced economic growth in Uzbekistan in 2020, growth is expected to resume this year and next, timely vaccinations and strong containment measures remain critical to the country's economic recovery,” said the Country Director of Asian Development Bank’s (ADB) Uzbekistan Resident Mission Ms. Cindy Malvicini
Investment is expected to remain the main driver of growth, averaging 9% in both 2021 and 2022, thanks to the Government's efforts to modernize industrial facilities and develop social and urban infrastructure. Private consumption is expected to rise by 7% on the back of higher wages and slower inflation.
Inflation is predicted to slow to 10% in 2021 and to 9% in 2022, as well as electricity and natural gas tariffs are expected to remain stable. Against the backdrop of lower inflation, the Central Bank maintains the refinancing rate at 14%. Monetary authorities are expected to reduce lending at concessional rates, allowing market forces to determine all lending rates.
The report also calls on Uzbekistan to continue to improve the transparency of its external borrowing. Publication of the public debt, as well as their terms, will help raise public awareness that the government is taking a prudent approach to debt management.
ADB is committed to achieving a prosperous, inclusive and resilient Asia and the Pacific region while continuing its efforts to eradicate extreme poverty. ADB was founded in 1966, members are from 68 countries, 49 of them are in the region.