Moderate inflation projected in Uzbekistan for 2021

Finance Materials 14 December 2020 15:54 (UTC +04:00)
Moderate inflation projected in Uzbekistan for 2021

BAKU, Azerbaijan, Dec. 14

By Klavdiya Romakayeva - Trend:

The inflation rate in Uzbekistan in 2021 and the next two years is projected at 8-11 percent, Trend reports referring to the Ministry of Finance of Uzbekistan.

According to the information publication "Budget for Citizens", inflation by the end of 2020 in Uzbekistan is expected to be at the level of 11-11.5 percent. Its decrease compared to last year (15.2 percent) is connected with a decline in economic activity, an increased demand for food and essential goods, an increase in credit investments and the volume of money supply, the devaluation of the national currency, as well as the negative consequences of the COVID-19 pandemic.

The latter led to a significant deterioration in the epidemiological situation, a decrease in economic activity against the background of the introduction of quarantine restrictive measures, and an aggravation of social problems.

It was noted that all this required the adoption of prompt measures to soften the fiscal policy, a significant increase in health care and social support for the population.

As a result, there is an increase in the budget deficit and the volume of external debt due to the attraction of additional external borrowings.

The ministry noted that forecasting the budget for 2021 was carried out taking into account the continuing uncertainty.


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