BAKU, Azerbaijan, June 23. Uzbekistan's economy has shown resilience despite shocks from the pandemic and the situation in Ukraine, Trend reports citing the International Monetary Fund (IMF).
COVID-19 pandemic had a significant negative impact on Uzbekistan's trade, tourism, and transportation. However, Uzbek government proceeded to advance structural reforms in spite of external shocks, which included recent reforms:
- liberalizing domestic prices and reducing crop placement requirements for cotton and wheat;
- making public procurement more transparent through a public portal;
- doubling the size of the social safety net;
- improving corporate governance by appointing more independent members of supervisory boards.
"However, given Uzbekistan’s close economic ties with Russia, the outlook for 2022 will depend upon spillovers from the situation in Ukraine and sanctions on Russia. Remittances, trade, and financing from Russia are expected to slow, reducing growth in 2022 to 3–4 percent", the IMF reports.