World Bank forecasts partial recovery of Uzbekistan’s economy from consequences of COVID-19

Uzbekistan Materials 1 April 2021 10:02 (UTC +04:00)
World Bank forecasts partial recovery of Uzbekistan’s economy from consequences of COVID-19

BAKU, Azerbaijan, Apr. 1

By Klavdiya Romakayeva - Trend:

Uzbekistan's economy is projected to recover partially from the consequences of the COVID-19 crisis in 2021 after a sharp slowdown in growth in 2020, Trend reports referring to the World Bank.

The World Bank (WB) has published the next edition of the “Economic Review of the Europe and Central Asia (ECA) Region”. The report analyzes the current state of economies in 23 countries of the region and gives forecasts of their socio-economic development in 2021 and 2022.

The bank's experts project Uzbekistan’s GDP growth to recover to 4.8 percent (previously 4.3 percent) in 2021.

“However, the growth rate may be affected by uncertainty related to the pace of global economic recovery and the success of the national vaccination campaign against COVID-19,” experts said.

It was noted that a gradual recovery in trade and investment flows, remittances from labor migrants, a bountiful crop and vaccination of the population will contribute to economic recovery and stimulate further reductions in unemployment and poverty.

Also, GDP growth in 2022 is projected to rise to 5.5 percent (previously 4.5 percent) as the pace of vaccination of the population accelerates and the disruptions in the global economy ease.

In addition, the current account deficit of the balance of payments is projected to widen to 5.5 percent of GDP in 2021 as the volume of imports of machinery, equipment and other industrial goods in the framework of large investment projects recovers.

According to forecasts, a reduction in state budget revenues, the purchase of vaccines, an expansion of social support for the population and an increase in funding for socio-economic development programs and state lending to enterprises will increase the budget deficit to 5.4 percent of GDP in 2021.

Also, it is expected that Uzbekistan's public debt will reach 42 percent of GDP in 2021 and stabilize at about 45 percent of GDP over the medium term.

“As conditions improve for households and businesses, the gradual elimination of anti-crisis measures will lead to a reduction in the budget deficit in the medium term,” the report said.


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