IMF: Uzbekistan expects 5.4% economic growth in 2024
Economy
Following the 2024 Consultations with Uzbekistan, the International Monetary Fund (IMF) issued its final statement.
It is reported that Uzbekistan's effective reforms, especially in the energy sector, privatization, and state-owned enterprises, have contributed to improving the prospects of economic development.
According to forecasts, real GDP growth will remain consistently high at 5.4% in 2024, driven by dynamic domestic demand, and will slightly increase to 5.5% in 2025.
In the first quarter of 2024, growth rates remained high, reaching 6.2% year-on-year (y/y). Sustainable growth in real incomes combined with measures taken since 2020 to expand the social protection system has contributed to a stable reduction in the poverty rate from 17% in 2021 to 11% in 2023.
Overall inflation has decreased from 12.3% (y/y) at the end of 2022 to 8.0% in March 2024, partly due to a relatively high real policy rate and a decrease in global prices for food and energy.
The statement emphasizes the need to continue focusing on reducing inflation in monetary policy. In particular, the Central Bank of Uzbekistan should continue to carefully monitor price dynamics and maintain a tight monetary policy until inflation stabilizes on a downward trajectory.
Additionally, it is noted that further improvement in business conditions will contribute to competition, diversification, and the creation of new jobs, while also ensuring a reduction in inflation rates.
This statement was issued by an International Monetary Fund (IMF) mission led by Mr. Yasser Abdih, which held discussions in Tashkent between 23 April and 7 May as part of the 2024 Article IV Consultation with the Republic of Uzbekistan.
According to forecasts, real GDP growth will remain consistently high at 5.4% in 2024, driven by dynamic domestic demand, and will slightly increase to 5.5% in 2025.
In the first quarter of 2024, growth rates remained high, reaching 6.2% year-on-year (y/y). Sustainable growth in real incomes combined with measures taken since 2020 to expand the social protection system has contributed to a stable reduction in the poverty rate from 17% in 2021 to 11% in 2023.
Overall inflation has decreased from 12.3% (y/y) at the end of 2022 to 8.0% in March 2024, partly due to a relatively high real policy rate and a decrease in global prices for food and energy.
The statement emphasizes the need to continue focusing on reducing inflation in monetary policy. In particular, the Central Bank of Uzbekistan should continue to carefully monitor price dynamics and maintain a tight monetary policy until inflation stabilizes on a downward trajectory.
Additionally, it is noted that further improvement in business conditions will contribute to competition, diversification, and the creation of new jobs, while also ensuring a reduction in inflation rates.
This statement was issued by an International Monetary Fund (IMF) mission led by Mr. Yasser Abdih, which held discussions in Tashkent between 23 April and 7 May as part of the 2024 Article IV Consultation with the Republic of Uzbekistan.
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