TASHKENT, Uzbekistan, May 2. Uzbekistan has seen significant economic growth since the pandemic: GDP has increased by more than 6 percent, and this is a direct result of the reforms we have undertaken, said Umid Abidkhadjaev, Deputy Minister of Economy and Finance of Uzbekistan, during the presentation of the IMF Regional Economic Outlook for the Caucasus and Central Asia (CAR), Trend reports.
However, Abidkhadjaev emphasized that while growth has been strong, the country must also address existing vulnerabilities and devise strategies to mitigate them. One critical aspect, he explained, is ensuring a balance between supply and demand to prevent the economy from overheating.
“Certain sectors, such as real estate, tend to respond to demand signals with a delay. Despite this, we are already seeing a healthy correction taking place,” he added.
The Deputy Minister also underscored the importance of maintaining a 3 percent fiscal deficit, which was reduced to 3.3 percent last year. “This is crucial for ensuring policy credibility, fiscal discipline, and preventing the crowding out of private investment,” he said.
Abidkhadjaev further highlighted that this year has been dedicated to advancing the green economy, with a focus on energy efficiency.
“Our goal is to achieve greater production with the same amount of energy. In the first quarter, four government decrees on energy efficiency were issued, and we established an Energy Efficiency Agency to encourage private sector involvement,” the Deputy Minister noted.
Infrastructure is another key focus. The government has introduced incentives for private sector participation in railway transportation, which is expected to have direct and spillover effects. Additionally, airline services are set to increase by 1.4 times this year, with 650 new hotels expected to boost tourism revenues to $2.5–$3 billion.
Finally, he mentioned land reforms, with 220,000 hectares of land leased from 2022 to 2024, anticipating both figurative and literal benefits.