According to World Bank estimates, Uzbekistan's economy grew by 6% last year.

Uzbekistan, Tashkent – According to the World Bank economists, Uzbekistan's GDP is projected to grow by 6% by the end of 2024. This information is highlighted in the latest edition of the World Bank's report "Global Economic Prospects," which analyzes trends, forecasts, and risks for the global economy and specific regions, including Europe and Central Asia (ECA), as reported by Podrobno.uz.

https://podrobno.uz/cat/economic/po-otsenkam-vsemirnogo-banka-v-proshlom-godu-ekonomika-uzbekistana-vyrosla-na-6-/2025-01-24 08:34:57

The organization's forecast for Uzbekistan in 2025 is 5.8%, and for 2026, it is 5.9%. This is one of the highest predictive indicators among countries in the ECA region. These figures align with the previous forecast made by the bank in October.

Against the backdrop of positive forecasts for Uzbekistan, the overall economic situation in the ECA region is more complex. Growth rates in 2024 have slowed to 3.2%, which is linked to weakened economic activity in Russia and Turkey, as well as the ongoing conflict between Russia and Ukraine. This situation negatively impacts economic stability in the region.

Inflation in ECA countries remains high. Core inflation rates are twice the levels recorded before the pandemic. A decline in commodity prices has slightly improved the situation, but labor market tensions, especially in the service sector, continue to exert pressure on wages.

An important factor for the economies of Central Asia remains remittances. Despite an overall slowdown in their inflow, the volume of remittances to Central Asian countries, particularly Tajikistan, remains stable, supporting the level of household consumption. However, the overall decrease in economic activity in Russia may negatively affect remittance inflows across the region.

The World Bank's forecast indicates a further slowdown in economic growth in the ECA region to 2.5% in 2025, with a slight increase to 2.7% in 2026. At the same time, it is expected that inflation will gradually decrease due to easing labor market tensions and falling commodity prices. Experts also anticipate an increase in public debt in half of the countries in the region.

Key risks include global economic uncertainty, potential new trade restrictions, and further escalation of the conflict between Russia and Ukraine. These factors could significantly impact the economic development of the region.

Additionally, climate change, such as an increase in the frequency of droughts and floods, presents additional challenges for the countries in the region. The World Bank emphasizes the need to adapt to these challenges to ensure sustainable economic growth.