Tashkent, Uzbekistan, March 30
By Demir Azizov- Trend:
The Asian Development Bank (ADB) has lowered the forecast for Uzbekistan's GDP growth for 2016 from 7 percent to 6.9 percent, ADB's 'Asian Development Outlook 2016' report said.
Uzbekistan's economic growth can recover to 7.3 percent in 2017, according to the bank's estimates.
The main reasons for the decline in GDP growth is the economic situation in the countries which are the main trade partners of Uzbekistan, first of all in Russia, as well as lower prices for certain exported goods, including the natural gas, gold, copper and cotton, according to the ADB experts.
Uzbekistan's trade volume with its main partners - Russia, Kazakhstan and South Korea - dropped by 22 percent in 2015, compared to 2014, said the report.
Exports of goods and services plunged by 8.8 percent, while the exports of energy declined by 30 percent, cotton by 9 percent, and metals by 16 percent, according to the ADB report.
"On the supply side, investment-led industry will remain the key driver of growth, supported by domestic lending," said the ADB. "The government will continue to support domestic consumption in 2016 and 2017, most likely by raising public sector wages, welfare payments, and pensions."
A more diverse and sophisticated export base is essential to ensure export competitiveness, according to the ADB.
Uzbekistan's GDP growth stood at 8 percent in 2015 and the government plans to ensure 7.8-percent GDP growth in 2016.
Uzbekistan became an ADB member in 1995 and today, it is the largest recipient of loans from this financial institution in Central Asia.
The Asian Development Bank has allocated over $5 billion to Uzbekistan since 1995 for implementation of the projects in the spheres of education, agriculture, modernization of the transport infrastructure and energy sector.