Uzbekistan’s Public Debt on the Rise, Government Plans More Borrowing
Uzbekistan’s Public Debt Reaches $37 Billion in First Half of the Year
In the first half of the current year, Uzbekistan’s public debt has reached $37 billion, representing 33.2% of the country’s GDP, according to the Minister of Economy and Finance, Jamshid Kuchkarov. This information was shared during a parliamentary session held on September 5.
Of the total public debt balance, $30.9 billion was attributed to external debt while $6.1 billion was from domestic debt. The International Monetary Fund has reported that Uzbekistan’s current public debt is at a moderate level.
During the first half of the year, Uzbekistan signed agreements for external borrowings amounting to $2.8 billion to support the state budget and refinance international bonds maturing in the same year. Additionally, sovereign international bonds worth $1.5 billion were issued in global financial markets.
A report from the Ministry of Economy and Finance revealed that in the first quarter of 2024, the country’s public debt was recorded at $35.3 billion, with 83% being external debt and 17% domestic debt. The ratio of public debt to GDP in the first quarter was 31.7%.
Projections indicate that the ratio of public debt to GDP is expected to increase to 37% in 2024, 37.4% in 2025, and 37.9% in 2026. Meanwhile, Uzbekistan’s GDP is forecasted to surpass $100 billion in 2024, $125 billion in 2025, and $140 billion in 2026.
To adhere to the law which sets a maximum public debt limit of 60% of GDP, Uzbekistan plans to keep the budget deficit for 2024 at no more than 4%. Monitoring the country’s public debt and ensuring sustainable economic growth will be crucial in the years to come.
