TASHKENT, Uzbekistan, October 5. The World Bank expects Uzbekistan’s real GDP growth to amount to 5.5 percent as of 2023, up by 0.4 percent from June projections, Trend reports.
This figure is set to rise to 5.6 percent in 2024, which is 0.2 percent more than in the previous forecast, while in 2025 the real GDP is set to stand at 5.8 percent, which does not differ from June projections.
The World Bank estimates that the real GDP in Uzbekistan increased by 2 percent in 2020, then rising 7.4 percent in 2021 and then dropping back to 5.7 percent in 2022.
The World Bank’s analysts stress that Uzbekistan’s fiscal consolidation is expected to continue gradually in the medium term, given the need to cushion the impact of external shocks and to restructure energy prices by bringing them to cost-recovery levels.
“The medium-term outlook remains positive as ambitious ongoing reforms are expected to stimulate private sector-led growth and job creation,” the bank added.
As per WB’s report, anticipated trends for 2023 include a decline in consumption growth due to the ongoing reduction in remittances from Russia. Import growth is foreseen to pick up pace during 2023 and continue to expand in the medium term, contributing to Uzbekistan's economic modernization efforts.
“With decreasing remittances, the current account deficit in Uzbekistan will widen. The fiscal deficit is expected to widen to 5 percent of GDP in 2023 as a result of persistently high energy tariffs, higher expenditure on education, public sector wages, pension and allowances, and lower revenue collections,” the report said.