Uzbek economy remains resilient - IMF

Uzbek economy remains resilient - IMF

Tashkent, Uzbekistan, Sept. 16

By Demir Azizov- Trend:

The International Monetary Fund (IMF) welcomed the Uzbek authorities' commitment to structural reform and the progress they have made thus far, said the message of the IMF published following the annual consultation with Uzbekistan, which ended in late August 2015.

Uzbekistan's economy has been resilient in a difficult external environment, characterized by weak economic activity in the euro area and Russia and low energy prices, said the experts of the fund.

Following solid growth performance of Uzbekistan - 8.1 percent in 2014, real GDP increased by 7.5 percent in the first quarter of 2015. Strong public investment has shielded the Uzbek economy, so far, from the slowdown experienced by other countries in the region. The external position of the country continues to be strong, and inflation has softened to around 9 percent through April 2015, owing to lower-than-anticipated administered price increases.

However, the difficult external environment, in particular, the drop in oil and gas prices and spillovers from economic slowdown in major trading partners are taking a toll on the external sector. Notably, gas and machinery exports were negatively affected.

Remittances fell by 14 percent in 2014 and 45 percent for the first quarter in 2015, compared to the corresponding periods of the previous year, said the message.

The authorities of Uzbekistan have continued their policy of gradual nominal depreciation of the sum, which has been slower than that of most major trading partners.

Fiscal policy remains prudent while the monetary policy stance is accommodative, according to the message. The fiscal outturn in 2014 registered a surplus (0.3 percent of GDP) on account of higher-than-projected excise taxes and efforts to streamline recurrent spending.

By contrast, the augmented fiscal surplus, which includes the Fund for Reconstruction and Development, narrowed (1.6 percent of GDP) on account of weaker commodity revenue.

The 2015 budget foresees a deficit of 1 percent of GDP, while the budget execution through the first quarter of 2015 registered a balanced outturn, owing to lower-than-budgeted spending.

On the monetary policy front, the Central Bank of Uzbekistan cut its policy rate, the refinance rate, to 9 percent in January 2015. Through end-March 2015, both reserve money and broad money increased, slightly above the annual target rates.

The IMF experts mention the risks posed by a weak external environment and low international energy and commodity prices, which require vigilance and appropriate macroeconomic policies.

The experts of the fund supported a looser fiscal stance in the near term, while ensuring medium-term sustainability. In this regard, executing planned expenditures and reallocating revenue over-performance to social safety nets and pro-poor spending would support growth, said the message.

Looking further ahead, the IMF welcomed the Uzbek authorities' newly adopted industrial modernization program. The IMF also recommended establishing a credible medium-term budgetary framework to better manage resource revenue and the public investment program.

The fund also urged the authorities of Uzbekistan to stand ready to tighten monetary policy if needed to contain inflationary pressures. To reduce inflation to sustainable single digits in the medium term, the IMF considered it important to upgrade the monetary policy framework and better align it with monetary aggregates targeting, as well as manage excess liquidity in the system.

The IMF also emphasized the importance of greater exchange rate flexibility to address rising pressures on the current account, and encouraged the authorities to move gradually toward foreign exchange liberalization and eliminate exchange restrictions as appropriate.

The experts of the fund said that the banking system remains stable and well capitalized, and urged the authorities to continue to strengthen the regulatory and supervisory framework. They noted the need to relieve banks of noncore functions and to phase out directed lending in order to deepen financial intermediation.

They welcomed the authorities' recently announced strategy to strengthen corporate governance and accelerate privatization, and looked forward to its effective implementation.

Uzbekistan became a member of IMF in 1992. IMF's representative office started operating in Uzbekistan from 1993.

It was previously reported that in 2014, the GDP of Uzbekistan increased by 8.1 percent compared to 2013, industrial production - by 8.3 percent, agriculture - 6.9 percent, capital construction - by 10.9 percent.

The Uzbek government plans to ensure GDP growth by 8 percent, industrial production - by 8.3 percent, agriculture - 6 percent, as well as to increase the volume of capital investments by 9.6 percent in 2015. The inflation is planned to be kept within 5.5 to 6.5 percent.

Disney to layoff about 32,000 workers in first half of 2021
Disney to layoff about 32,000 workers in first half of 2021
India records 44,489 new coronavirus cases
India records 44,489 new coronavirus cases
Amazon workers in Germany to go on strike on 'Black Friday'
Amazon workers in Germany to go on strike on 'Black Friday'
Loading Bars
Latest
Over 3,500 coronavirus-related deaths recorded in Moscow in October
Belavia resumes regular flights from Baku to Minsk in early December
Iran hopes Kish-Istanbul-Abadan flights to improve its trade
Kazakhstan Railways opens tender to buy welding equipment
Georgia to support businesses amid new coronavirus restrictions
WB extends deadline for implementation of agricultural project in Azerbaijan
Turkey steps up inspections as coronavirus pandemic figures climb
Cavushoglu and Stoltenberg discuss situation in Karabakh
Swedish royals test positive for COVID-19
England reveals new regional COVID tiers in fight against coronavirus
Azerbaijani gymnasts reach finals of 36th European Championship in Ukraine
Georgia continues to support its citizens amid COVID-19 pandemic
News on return of Azerbaijani soldier captured by Armenians false, relative says
Azerbaijan sends note of protest to France
Ample opportunities for investments to be created in Karabakh – minister
Azerbaijani's negotiations with UAE on renewables nearing completion
Kazakhstan, Mongolia eye signing roadmap for trade, economic co-op
Russia bans import of tomatoes from Uzbekistan’s Fergana region
36th COMCEC session opens under chairmanship of Turkish president (PHOTO)
Uzbek Ministry of Finance publishes draft law on increasing taxes on gasoline, diesel
Russian Gazprombank predicts Azerbaijan's economic recovery in 2021
iPhone 12 Pro Max and iPhone 12 Mini now at Azercell Exclusive shops!
Iran becomes self-sufficient in building oil, gas platforms
Cotton growing in Azerbaijan hits record - agriculture ministry
Italian municipalities adopt documents expressing solidarity with Azerbaijani people
Uzbekistan to grow industrial cannabis in Sardoba district
Azerbaijan detects 3,705 new COVID-19 cases, 1,609 recoveries
Turkmen Ministry of Construction opens tender for equestrian sports complex construction
Azerbaijani, Saudi FMs exchange views on current situation in Karabakh
Uzbekistan reveals data on its ICT sphere enterprises and organizations
Azerbaijan to export persimmons to Slovakia and Czech Republic
Level of religious tolerance in Azerbaijan is much higher than in France - ISESCO ex-director
Kazakhstan's exports to Switzerland decrease year-on-year
Azerbaijani medical insurance agency signs contract with tender-winning IT company
Resolution adopted by French Senate must be canceled – Azerbaijani NGO head
Volume of Turkish textile clothing supplies to Kazakh market surges
Latvian AirBaltic cancels Riga-Tbilisi-Riga flights
Reconnaissance work completed within Baiterek space complex creation in Kazakhstan
Thermal power plant modernization, other projects underway in Kazakhstan's Karaganda
Georgia imposes further restrictions to curb spread of coronavirus
Georgian carrier to launch regular cargo flights from China to Europe
Russia's Rostelecom expects to develop transit routes through Turkmenistan
Average monthly salary in Azerbaijan's Nakhchivan rises
Azerbaijani, Afghan FMs discuss latest situation in region
WB, AIIB to fund rural infrastructure development in Uzbekistan
Azerbaijani, Indonesian FMs stress importance of trilateral ceasefire statement
Austria fully supports Uzbekistan obtaining of EU’s GSP beneficiary status
Turkmenistan's Dashoguz region opens tender for installation work
France not part of Karabakh settlement, but part of problem - Turkish defense minister
Japanese companies to provide technical support for terry production in Uzbekistan
Germany's hotspot district to launch COVID-19 mass tests for children
Yield of citrus fruits in Azerbaijan up
Capital of Kazakh companies operating in Turkey revealed
Iran boosts its pistachio exports
World Economic Forum announces Azerbaijan's road quality score
Share of assets in Azerbaijani banking sector declines
Kazakhstan eyeing amending legislation to support renewable energy dev't
Georgian Hualing Free Industrial Zone plans to finalize deal with 4 new companies
Mortgage lending in Azerbaijan through state line grows manifold
Kazakhstan to launch hundreds of industrial projects before year-end
Azerbaijani ICT company wins tender on purchase of licenses
Central Bank of Azerbaijan discloses data from foreign exchange auction
Employment in Iran's West Azerbaijan Province increases
Buta Airways to Increase the Frequency of Flights Performed to Izmir
Azerbaijan, Hungary discuss possibilities of attracting investors to liberated territories
Georgian Huliang FIZ offering available land plots to potential investors
Azerbaijani NBCO talks about its activities amid coronavirus
Azerbaijan’s carpet producer signs tender contract
Many members of French Senate unaware war in Karabakh ended (VIDEO)
Number of people infected with coronavirus pandemic in Iran exceeds 900,000
Baku Stock Exchange admits local investment company
Uzbekistan eyes to set up local production of various vaccines
France does not deserve Azerbaijan’s confidence – senator
Bahar Azadi gold coin price still falling in Iran
Bank mortgages in Azerbaijan rise
Full text of Azerbaijani parliament’s statement against French Senate’s resolution
Iran's economy remains strong and steady – Iran's president
Turkmenistan to be vital strategic partner, gas supplier to China long-term - Wood Mackenzie
EDB talks Kazakhstan's economy growth forecast, return to pre-COVID levels
Ambassadors of Turkey, Iran to Azerbaijan hold discusses on Karabakh
“I am quite sure that giving a hand to customers in this challenging time will pay off in the future”: interview with Dariusz Kacprzyk, Member of Supervisory Board of AccessBank Azerbaijan
Import of Turkish ready-made clothes by Iran down
Water resources of Azerbaijan’s Kalbajar district to be re-explored
Turkey's export of ready-made clothes to Uzbekistan down
Money supply in Azerbaijan grows - CBA
Lending to banking sector in Azerbaijan up
Turkmenistan raises 10M2020 imports of Turkish ready-made clothes
Uzbek gas chemical company opens tender for insurance services
Precious metal prices in Azerbaijan up
Azerbaijan’s natural gas exports to Turkey down by 8%
German manufactures interested in buying high-quality walnuts in Georgia
New carpet factory opens in Turkmenistan
German company builds float glass plant in Uzbekistan’s Zarafshan city
Iranian oil minister talks about petrochemical facilities launched in Iran
Azerbaijan can't be pressured by adopting some paper piece - parliament's vice speaker
Azerbaijani parliament voices appeal to government due to France
Azerbaijan to implement digitalization of services of local executive authorities
French Senate betrays democratic values - Turkish government
China's import of Turkish cement up
Azerbaijani parliament condemns resolution adopted by French Senate
All news