Uzbekistan’s GDP Expected to Surge in 2024-2025, IMF Predicts
The International Monetary Fund (IMF) has released a report projecting a 5.6% growth in Uzbekistan’s GDP for the current year, with a further increase to 5.7% in 2025. The report, published on the IMF’s official website, highlights the country’s economic performance in the first half of 2024, with a real GDP growth rate of 6.4% year-on-year.
However, the report also notes a rise in annual inflation, measured by the Consumer Price Index (CPI), from 8% to approximately 10.5% due to regulated energy price increases in early May. Despite this, the IMF remains optimistic about Uzbekistan’s economic outlook, stating that the economy continues to experience robust growth.
To address the inflationary pressures, the IMF recommends tightening monetary and fiscal policies and reducing the impact of rising energy prices. The report advises Uzbekistan’s Central Bank to aim for an inflation target of 5% and to maintain a tight monetary policy stance until inflation is steadily moving towards this target.
Furthermore, the IMF emphasizes the need for financial sector reforms to align Uzbekistan’s banking supervision with international standards. The organization also suggests phasing out directed lending practices to improve credit allocation efficiency and increase access to credit for the private sector.
The IMF’s recommendations were made following a team visit to Uzbekistan led by Yasser Abdih, which took place in mid-September. Overall, the IMF’s comments highlight both the positive growth prospects and the challenges facing Uzbekistan’s economy, emphasizing the importance of implementing necessary reforms to ensure sustainable economic development.
