Uzbekistan overview

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A new approach by the Uzbekistan authorities has allowed the EBRD to re-engage in the country, open a new Resident Office in Tashkent and prepare a new Country Strategy adopted by the Board of Directors in September 2018.

The document identifies the following operational and strategic priorities for the EBRD’s work in Uzbekistan:

  1. Enhancement of competitiveness by strengthening the role of the private sector’s role in the economy
  2. Promotion of green energy and resource solutions across sectors
  3. Support increased regional and international cooperation and integration.

The Bank’s new phase of engagement with the country was prompted by a major reform programme launched by the authorities in February 2017 moving towards a more open, integrated market economic model, improving international relations, strengthening the rule of law and judicial independence and achieving the liberalisation of the foreign exchange rate. Reducing the state’s presence in the economy, improving the business environment and facilitation of foreign direct investments are among the top priorities of the Uzbek authorities.

The new EBRD strategy for Uzbekistan recognises the need to strengthen the country’s democratic institutions, expand the role of civil society, provide greater freedom to mass media and promote women’s entrepreneurship. The Bank will also continue monitoring progress on the eradication of forced and child labour in sectors such as the cotton growing industry.

The EBRD's latest Uzbekistan strategy was adopted on 19 September 2018.

Uzbekistan's policy response to the coronavirus crisis

The EBRD is monitoring Uzbekistan's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.

Learn more

Current EBRD forecast for Uzbekistan's Real GDP Growth in 2021: 5.6%

Current EBRD forecast for Uzbekistan's Real GDP Growth in 2022: 6%

Real GDP increased by 3 per cent year-on-year in the first quarter of 2021 (compared to 4.6 per cent a year ago). Growth was recorded in all main sectors: services, industry, construction and agriculture. A surge in remittances (up 34 per cent year-on-year in US$ terms in the first four months) stimulated private consumption and growth in retail
trade (up 2.8 per cent year-on-year).
 
However, investment activity has not yet recovered, with fixed investment down by 3.5 per cent year-on-year in the first quarter of 2021. Exports contracted by around 20 per cent year-on-year in January-April 2021, primarily as exports of gold were brought to a halt. Imports were up by 7 per cent year-on-year.
 
Inflation is slowing down (10.9 per cent in May 2021 versus 14 per cent a year earlier) thanks to lower growth in food prices. The policy rate has been kept unchanged since September 2020 at 14 per cent. Public debt rose from 30.8 per cent of GDP at end 2019 to 40.1 per cent in March 2021.
 
Fiscal policy will continue to support the economy in 2021 with the consolidated fiscal deficit targeted at 5.5 per cent of GDP. Ambitious market reforms, including privatisation and improved governance of state-owned enterprises, continue to advance despite the crisis. GDP growth is projected to ratchet up to 5.6 per cent in 2021 and 6 per cent in 2022 as private consumption and investment are expected to rebound.
 
However, the forecast is subject to a high degree of uncertainty.
 
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