IMF comments on inflation growth in Uzbekistan

Business Materials 15 March 2018 14:37 (UTC +04:00)

Baku, Azerbaijan, March 15

By Fikret Dolukhanov – Trend:

Inflation growth rate increased in Uzbekistan and has reached roughly 20 percent according to the International Monetary Fund’s (IMF) methods, said visiting head of the mission, Albert Jaeger.

The mission visited Tashkent on Feb 28. – March 13 to hold consultation in line with the IMF’s charter.

The Uzbek government will have to carry out serious work to hold down inflation rate and decrease it to one-digit figures (below 10 percent) in the next two years, he told Uzbek media.

The Fund’s representative noted that the current inflation rate has “a good cause” as a consequence of the reforms necessary for Uzbekistan.

“We currently see no need in IMF’s financial support,” Jaeger added.

The Mission believes that the monetary system reform in Uzbekistan has to be accompanied by restructuring state enterprises, carrying out tax system reform, eliminating other factors, constraining development of international trade, and attracting direct foreign investments.

According to the official statistics, inflation in Uzbek consumer market amounted to 14.4 percent in 2017, compared to 5.7 percent in 2016. The 2.5-wise growth is caused by devaluation of the national currency and liberalization of the monetary market.

The IMF forecasts 16.9-percent inflation in the republic in 2018, while the Uzbek Central Bank expects the figure at 11.5-13.5-percent.