Uzbek state debt may reach almost half of GDP by end of 2021

Business Materials 29 September 2021 13:52 (UTC +04:00)
Uzbek state debt may reach almost half of GDP by end of 2021

BAKU, Azerbaijan, Sept. 29

By Fakhri Vakilov – Trend:

The total state debt of Uzbekistan may reach 40 percent of the country's GDP by the end of 2021, while five years ago this figure was 10 percent, Representative of the International Monetary Fund (IMF) Ron van Roden said, Trend reports referring to the Uzbek media.

Van Roden made the remark at the Tashkent Economic Forum in Uzbekistan.

According to the IMF representative, the growth of the national debt is the result of investments in various infrastructure projects, including in the energy sector, as well as the fight against the pandemic.

“Transformation of state-owned enterprises affects the rapid growth of public debt in Uzbekistan. In this regard, the public debt can reach 60 percent of the country's GDP. However, now we need to move on to the second stage of reforms - active attraction of private investment. This will require openness and transparency,” Roden said.

In accordance with the Deputy Prime Minister, Minister of Economic Development and Poverty Reduction of Uzbekistan Jamshid Kuchkarov, the government has set the maximum value of the public debt at 60 percent of GDP, which is now established in legislation.

Rodin stated that the national debt of 40 percent of GDP is not critical. According to him, the IMF regularly conducts analysis and the security of the country's economy is ensured thanks to a reliable fiscal policy and accumulated gold and foreign exchange reserves.

"Uzbekistan is one of the few countries that has managed to maintain economic growth at 1.6 percent," Rodin said.

According to IMF representative, the ongoing reforms in Uzbekistan in the form of liberalization of the foreign exchange market and prices and the introduction of reliable macroeconomic policies have helped the country to cope with the consequences of the pandemic.


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