Uzbekistan doubles investment forecast for 2019
BAKU, Azerbaijan, Jan. 18
By Fakhri Vakilov-Trend:
Considering all sources of financing, the volume of investment in Uzbekistan amounted to $23.1 billion in 2019, exceeding the approved annual forecast indicators by 2 times, Trend reports referring to the press service of Uzbekistan’s Ministry of Investment and Foreign Trade.
This amount includes investments in fixed assets equal $19.9 billion, with a growth rate by 1.3 times compared to 2018.
The share of the volume of investments in fixed assets in the structure of GDP increased from 30 percent in 2018 to 36.2 percent in 2019 (the share of total investments in the structure of GDP as of the end of 2019 amounted to 42.1 percent).
In the reporting period, about 2,800 social, infrastructural and industrial facilities were commissioned: 145 large industrial facilities, 167 large regional projects, and 2,500 social and infrastructural facilities.
A significant increase in investment activity indicators is due to an increase in the inflow and development of foreign investments and loans in the amount of $13.3 billion, of which direct foreign investments were attracted in the amount of $9.3 billion with the development of fixed assets in the amount of $6.6 billion; and funds of international financial institutions were attracted in the amount of $4 billion with the development of fixed capital in the amount of $3.2 billion.
At the same time, the share of utilized foreign direct investment in the total volume of investments grew to 37 percent (for comparison, in 2018 this indicator amounted to 10.5 percent).
The main foreign partners in attracting foreign investment to Uzbekistan were China, Russia and Germany, while the total number of investing countries in the economy of Uzbekistan grew significantly, and the share of the largest investing countries fell to 34 percent of the total attracted foreign direct investment and loans.
Active growth in attracting foreign direct investment was observed in the metallurgical industry (growth of 6.6 times), the construction materials industry (growth of 7.8 times), the food industry (growth of 7.6 times), the textile industry (an increase of 3.7 times), the electrical industry (an increase of 28.2 times), leather and footwear (an increase of 3.6 times) and the pharmaceutical industry (an increase of 15.4 times).
Moreover, the growth trend of foreign direct investment flows into regional projects strengthened, the total value of which in 2019 amounted to $4.8 billion (of which $4.2 billion was in fixed assets), an increase of four times compared to the same period in 2018 and 24 times compared with 2017. In the regions, with the participation of foreign capital alone, 167 projects with a total value of $858.5 million were put into commercial operation.
In 2020 and subsequent years, work will continue to actively attract foreign direct investment, diversify areas for implementing projects in priority areas such as electricity, the chemical industry, the production of electrical products, IT technologies, light industry, agriculture and the production of building materials. The emphasis will remain on increasing the number of plants for the deep processing of raw materials with the creation of chains of high added value.
According to the Investment Program, approved by Presidential Decree on January 9, 2020, this year, from all sources of financing, the development of investments in fixed assets is projected in the amount of $24.4 billion, of which foreign direct investment is $9.1 billion with the development of fixed capital is $7.1 billion, foreign investment and loans under the state guarantee - $2.7 billion.
In particular, in 2020, it is planned to commission more than 2,000 social, infrastructural and industrial facilities: 206 new large production facilities, 240 regional production facilities, 1,600 social and infrastructural facilities.
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