Uzbekistan's economy is open for investors

Uzbekistan’s economic freedom score is 57.2, making its economy the 114th freest in the 2020 Index. Its overall score has increased by 3.9 points due to higher scores for investment freedom, financial freedom, and property rights. Uzbekistan is ranked 26th among 42 countries in the Asia–Pacific region, and its overall score is well below the regional and world averages.

The COVID-19 crisis has almost entirely extinguished GDP growth in 2020. To mitigate the economic, social, and health consequences of the pandemic, the Government has been taking anti-crisis policy measures.

These measures have focused on containing the virus, protecting lives and livelihoods, and keeping the reforms on track. Government efforts to mitigate the economic impact of the pandemic include sizable additional spending on health care and social assistance and financial support to firms. International financial support, including from the World Bank, the International Monetary Fund, the Asian Development Bank, and bilateral donors, is expected to cover the financing needs stemming from the crisis.

The relevant state agencies are currently drafting Poverty Reduction and Employment Strategies that will define further measures the Government will take until 2030 to protect the most vulnerable.

Persistent COVID-19 disruptions at the local and international levels have tempered prospects for a quick recovery in 2021. Nevertheless, Uzbekistan’s outlook remains positive as reforms continue to shift the economy toward greater resource efficiency and private sector growth.

In 2021, Uzbekistan’s economy will grow by 4.5% due to the recovery of exports and domestic demand, the European Bank for Reconstruction and Development (EBRD) said in a report.

“Economic growth in Uzbekistan slowed to 0.2% year-on-year in the first half of 2020, remaining positive mainly due to growth in agriculture and construction (2.8% and 7.3% year-on-year, respectively),” - notes the bank.

By Sher Karimov

 

The Liberum

Vox Populi, Vox Dei
See full bio >
The Liberum runs on your donation. Fight with us for a free society.
Donation Form (#6)

One comment on “Uzbekistan's economy is open for investors”

  1. yes, first of all, Uzbekistan liberalized the currency regime, which led to the unification of the exchange rate to replace the previously existing
    several exchange rates for various reasons

More articles you might like

Systemic Constraints on the Armenia–Azerbaijan Settlement

Despite the finalisation of a draft peace treaty between Azerbaijan and Armenia on 13 March […]

KSA: the new regional power in the Middle East

In every geographical region, countries strive to expand their influence and attain a regional status […]

EU under French Gaullism

The ascendancy of US President Donald Trump to a second term came with a seismic change in […]

The Ukraine Paradigm: Challenged by George Kennan and Donald Trump

The current paradigm on the war in Ukraine sees Russia, more specifically Russian leader Vladimir […]

Democracy Unmasked: Trump and the Return of the Sovereign

There is something unsatisfying about the way we talk about democracy. We treat it as […]

Why Russia is unlikely to benefit from U.S.-Ukraine tensions

Where two are fighting, the third wins. If this proverb is correct, Russia would have […]