IMF: Economic growth in Uzbekistan to be positive due to growth in construction sector

IMF: Economic growth in Uzbekistan to be positive due to growth in construction sector

BAKU, Azerbaijan, Sept. 22

By Klavdiya Romakayeva - Trend:

Provided the pandemic gradually abates in 2021, economic growth is expected to pick up to about five percent in 2021, Trend reports with reference to the International Monetary Fund.

An International Monetary Fund (IMF) mission, led by Assistant Director in the International Monetary Fund's European Department and current mission chief for Ukraine Mr. Ron van Rooden, conducted a virtual staff visit to Uzbekistan during to discuss economic developments and policies.

“The authorities’ efforts to mitigate the economic impact of the crisis, caused the COVID-19 pandemic, have mainly consisted of fiscal measures, with sizable additional spending on health care and social assistance, and support for small businesses, including tax relief,” said Mr. van Rooden at the end of the mission.

The Central Bank of Uzbekistan (CBU) has lowered its interest rate from 16 to 14 percent and provided ample liquidity to the banking system while encouraging banks to allow affected sectors to defer loan repayments.

With the fiscal stimulus measures and combined with the losses in tax revenues due to the decline in activity, the consolidated fiscal deficit is projected to increase from about 2½ percent of GDP in 2019 to almost six percent of GDP this year (and almost 7½ percent of GDP including policy lending).

“International financial support, including from the IMF, the World Bank, the Asian Development Bank, and others, will help cover the financing needs in Uzbekistan that have arisen from the crisis,” added van Rooden.

Supported by these efforts, economic growth, while slowing markedly, is still expected to be moderately positive this year, with continued growth notably in the construction sector. Inflation, although still high at just over 11 percent, has gradually come down and with a relatively tight monetary policy stance is expected to decline further in the period ahead toward the CBU’s inflation targets.

“While the authorities’ focus has been rightly concentrated on addressing the COVID-19 crisis, they have not lost sight of the reform agenda and the medium-term goal of achieving stronger, sustainable, and inclusive economic growth, to improve people’s living standards,” van Rooden said.

Nonetheless, the authorities continue to make progress, notably in strengthening economic institutions, including by enhancing capacity particularly at the Ministry of Economic Development and Poverty Reduction, the Ministry of Finance, and the CBU.

Rooden believes that the crisis should not delay the reform of the state-owned banks, enterprises, and the agricultural sector.

“The IMF stands ready to continue to support Uzbekistan in these efforts with policy advice, technical assistance, and financial assistance if needed,” noted van Rooden.

---

Follow the author on Twitter: @romakayeva

Subscribe to Trend in Google News! Subscribe
Buy/sell operations at Iran Mercantile Exchange soar
Buy/sell operations at Iran Mercantile Exchange soar
Iranian private investments in Tajikistan expected to grow
Iranian private investments in Tajikistan expected to grow
IRICA unveils data on exports of Iran to Belarus
IRICA unveils data on exports of Iran to Belarus
Loading Bars
Latest
Energy Community highlights leading energy projects implemented in Georgia
First concert of Azerbaijan's trio under leadership Isfar Sarabsky takes place as part of European tour (PHOTO/VIDEO)
Buy/sell operations at Iran Mercantile Exchange soar
Graduation ceremony of Azerbaijani servicemen participating in courses held in Turkey
Heavy rains lash India's Kerala, red alert sounded in 5 districts
Share of households with internet access increases in Georgia
Seventeen U.S. missionaries and family kidnapped in Haiti
Iranian private investments in Tajikistan expected to grow
1,900 new COVID-19 cases reported in Kazakhstan
IRICA unveils data on exports of Iran to Belarus
Azerbaijan national team takes second place at Grand Slam judo tournament
8 killed, over 20 injured in traffic accident in Peru
1 deputy killed, 2 injured in "ambush shooting" in U.S. Texas
Israel's active COVID-19 cases below 20,000
At least 6 dead, 1 missing after ship sinks in Brazil
Azerbaijani Foreign Ministry shares publication in connection with anniversary of Armenia's missile attack on Ganja
Information about firing of Azerbaijani army in direction of Arazdeyen does not reflect truth - Ministry of Defense
Sudan protest calls for military coup as political crisis deepens
Chronicles of Victory: President Ilham Aliyev addresses the nation on October 17, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 17, 2020
District Election Commissions to sum up protocols of municipal polls in Georgia
A working meeting of the delegations of Uzbekistan and Afghanistan takes place
Russian authorities say 18 dead in suspected alcohol poisoning in Yekaterinburg
UN chief welcomes unilateral cease-fire in CAR
Iran’s Bahar Azadi gold coin price continues to rise
Work on increasing wages, pensions and benefits begins - Ministry of Finance of Azerbaijan
Official talks reasons for increase in gas prices in Azerbaijan
Post-conflict reconstruction projects launched by President Ilham Aliyev is unprecedented - Aide to President (VIDEO)
Azerbaijani IDEA signs agreement with All-Russian Society for Nature Conservation (PHOTO)
Saudi Arabia's PIF launches offshore platform tourism project
NATO Special Representative for Caucasus to visit Azerbaijan
Iran's Energy Exchange announces products to be on sale on October 17
Iran reaches grow in exports to Kyrgyzstan
World gas prices grow by 20-30 times compared to last year - SOCAR
Latvia to gift Georgia 83,070 doses of Pfizer jab
Earthquake hits southern Iran
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,681 more COVID-19 cases, 675 recoveries
South Caucasus countries need to coordinate to open communications - Pakistani diplomat
Azerbaijani President Ilham Aliyev signs decree on raising social payments
Iran reveals COVID-19 data for October 16
Uzbekistan to privatize public park in Tashkent
Muslims all together sympathetic with Azerbaijan - Palestinian ambassador
Iran's exports to Kazakhstan up
SOCAR Georgia Gas opens tender on pickup trucks through operating lease
Turkish president and German chancellor holding talks in Istanbul
Novak does not rule out recurrence of energy crisis in Europe, urges its prevention
Azerbaijani official talks victims of Armenian attacks on Tartar during Second Karabakh War
Centuries needed to revive nature of Azerbaijan's Karabakh - minister
Azerbaijan raises electricity and gas prices
Restoration work in Azerbaijan’s liberated territories show positive trend – Kyrgyz ambassador
Over past 25-30 years, no country independently conducted such large-scale reconstruction in post-conflict period - aide to Azerbaijani president
Armenia must take serious and positive steps to open communications - Azerbaijani president's assistant (Exclusive)
Azerbaijan looks to sign document on demining liberated territories with France
Azerbaijan's Air Defense Units carrying out combat firing exercises (VIDEO)
Azerbaijan's Karabakh to be famous for its "smart cities" and agricultural products - Turkish ambassador
Iran boosts exports to Russia
Russia registers over 1,000 coronavirus deaths in 24 hours first since pandemic starts
Kazakh energy minister names reasons for shutdown of Pavlodar refinery
Iran sees increase in trade turnover with EAEU member states
Representatives of diplomatic corps view restoration work in liberated territories of Azerbaijan (PHOTO)
First plane with UN humanitarian aid for Afghanistan arrives in Uzbekistan
Iran records increase in load/unload operations in Amirabad port
Georgia and US to discuss co-op in Black Sea
Fuzuli Airport Granted International Status and Assigned IATA Code
Uzbekistan to fund startups in various sectors
U.S. lawmaker blames Boeing leaders for culture that led to crashes
Turkmenistan to purchase agricultural machinery from foreign manufacturers
Iran Energy Exchange shares data on sales of Iran’s Jam Petrochemical Company
Azerbaijan names gymnasts to perform at World Championships in Japan
During former occupation of Sugovushan, Armenia deprived vast lands of water - aide to Azerbaijani president (PHOTO)
Volume of loaded and unloaded cargo in Iran’s Noshahr Port down
Georgia shares data on COVID-19 cases for October 16
Kazakhstan boosts trade with Turkmenistan over 8M2021
Exports of steel manufacturers in Iran increase
Georgia, EU, and Turkey enter into "diagonal cumulation" agreement
Azerbaijani sees increase in oil prices
Iran raises ceiling on housing loans
Uzbekistan’s FEZ creates good basis for deepening co-op with Azerbaijan
Turkmenistan’s private enterprise eyes building dry cargo vessel
Trade turnover between Russia, US may hit record this year, says Deputy PM Overchuk
Iran to launch several shipping lines to Russia, Kazakhstan
Iran looks to improve transportation of goods from Khuzestan Province
Russia’s Korona Pay eyes expanding money transfers via Azerbaijan's mobile banking apps
Gas prices in Europe to remain high over next 6 months
Iranian currency rates for October 16
Turkmenistan's electric potential rises after commissioning new capacious power plants
Iran to increase fuel production
UK MP killing was terrorist incident, Met Police say
Representatives of diplomatic corps in Azerbaijan begin visit to Sugovushan
Czech Republic eyes to support improvement of Georgian air transport infrastructure
1,900 more COVID-19 cases reported in Kazakhstan
Biden says those who refuse to testify in Jan 6 probe should be prosecuted
ISIS claims responsibility for mosque attack in Afghan city of Kandahar
Fully vaccinated foreign visitors can enter U.S. starting on Nov. 8
China's Shenzhou-13 crewed spaceship docks with space station module
UK records more than 40,000 COVID cases for third day in a row
Biden says Clinton will be released ‘shortly’ from California hospital
Amazon-owned Twitch says source code exposed in last week's data breach
Israel's annual inflation up 2.5 pct, highest in nearly decade
All news