The World Bank has improved Uzbekistan's GDP growth forecasts

The World Bank has improved its forecast for economic growth of Uzbekistan for 2023-2024. This is stated in the bank's report on the economy of Europe and the Central Asian region.

The World Bank estimates that the growth of Uzbekistan's GDP will approach 5.5 percent in 2023. It can accelerate in stages in the medium term and reach 5.6 and 5.8 percent in 2024 and 2025, respectively. In 2023, the growth of consumption levels slows down, which is due to a decrease in the volume of transfers from Russia.

It is noted that import growth is expected to accelerate in 2023. In order to maintain the pace of modernization of the economy, its size will continue to grow in the medium term. With a decrease in the volume of transfers, the country's current account deficit reached 6.3 percent in the first half of the year and will continue to grow.

” Due to high spending on the energy sector, higher spending on education, wages, pensions and benefits in the public sector, and lower revenues, the budget deficit in 2023 is projected to increase to 5% of GDP, " the report said.

The government is expected to consolidate the budget in the medium term, reducing the budget deficit to 4% of GDP in 2024 and 3.6% in 2025. This will be due to a reduction in tax benefits for state-owned enterprises, a reduction in the costs of energy subsidies, as well as an increase in financial revenues from the privatization of state assets.

The government is also expected to comply with its own restrictions on external borrowing. Therefore, public debt will grow to 36% of GDP in 2023 and 36.6% in 2024.

Yttb, IMF and World Bank forecasts
Earlier, the European bank for reconstruction and development projected that the economy of Uzbekistan will grow by 6.5 percent in 2023 and 2024. The Bank noted in its regional report that, despite the relatively weak external dependence, the economy of Uzbekistan may be hampered by the further escalation of the Russian war against Ukraine and the reduction of money transfers.

The International Monetary Fund reported in April that it improved Uzbekistan's economic growth forecast.
According to him, GDP growth in Uzbekistan in 2023 is expected to be 5.3 percent, compared to 4.7 percent in the forecast for October.
The World Bank stated that Uzbekistan would have the best economic growth in Europe and the Central Asian region in the next two years. 
The growth rate of the Republic's economy is expected to be 5.4 and 5.8 percent for 2024 and 2025, respectively.