Decline in Global Institutions’ Effectiveness as Economic Risks Increase
President Shavkat Mirziyoyev chaired a video conference to address the impact of global economic and trade restrictions on Uzbekistan. The discussion focused on measures to mitigate the effects of these restrictions on the country’s economy.
In his opening remarks, President Mirziyoyev highlighted the changing global economic landscape, emphasizing that traditional international institutions are becoming less effective in maintaining stable relations and mutual trust between nations. He expressed concerns about the potential slowdown in the global economy and a decline in international trade due to rising tariffs, which could result in a $3.5 trillion reduction in global trade volumes and a 7.5-8 percent increase in global inflation.
The president also raised the alarm about the possible disruption of supply and value chains worldwide, particularly in key industries such as textiles, electronics, automotive, and food. He noted that countries with high import tariffs may adopt aggressive trade policies, leading to intense competition in markets where Uzbekistan exports its products.
Despite these challenges, Uzbekistan has made significant progress in improving its position in the Economic Complexity Index, moving up 25 places over the past five years. Currently, 162 Uzbek products are identified as having a competitive advantage in global markets. The country’s exports have also increased by 2.2 times in recent years, with foreign trade turnover reaching 57 percent of the GDP.
President Mirziyoyev underscored the importance of diversifying the economy and reducing dependency on foreign markets to ensure long-term economic stability. The government will continue to work towards implementing measures to support domestic industries and strengthen Uzbekistan’s position in the global economy.
