“The economy of Uzbekistan grows in 2023-2024” – ADB

The economy of Uzbekistan is projected to grow in 2023-2024, according to the Asian Development Bank (ADB). The ADB's review in September revealed that Uzbekistan's economy is expected to expand by 5.5% annually over the next two years.

According to ADB forecasts, Uzbekistan's economic growth is set to improve for the current and next year. Previously, the regional development bank had predicted a 5% economic growth rate in April. Among the contributing factors to this growth, there is a notable increase in the export of food and textile products to Russia, as well as rising investments.

Uzbekistan's economy saw a robust 5.6% growth in the first half of the year, surpassing expectations. This growth can be attributed to fiscal stimulus, strong foreign trade, industrial expansion, and increased mining and investment.

However, the ADB anticipates that the inflation rate will remain above 10 percent. Price liberalization is expected to exert short-term inflationary pressure. It is worth noting that next year, inflation is predicted to decrease to its lowest rate since 2015, at 10 percent.

"The first half of 2023 witnessed inflation in Uzbekistan accelerating from 10.6 percent last year to 11 percent due to increased wages and pensions. Inflation is expected to remain high throughout the year due to the forecasted rise in energy tariffs," states the bank's report.

Additionally, in the first quarter of this year, money transfers decreased by 55% compared to the peak in 2022. One of the reasons behind this decline is the reduction in the number of seasonal migrant workers employed in Russia, further exacerbating the current account deficit.