On April 24, President Shavkat Mirziyoyev chaired a videoconference meeting to analyze economic growth in regions and sectors during the first quarter of this year and outline priority tasks until the end of the year, according to the presidential press service.
At the outset, macroeconomic results for Q1 were reviewed. GDP grew by 8.7%, industry by 8%, services by 16.1%, and agriculture by 5.1%. Exports reached $5.8 billion, foreign investments totaled $13.7 billion, and annual inflation fell to 7.1% for the first time.
The head of state emphasized systemic reforms to elevate the economy to a new international level. Notably, next month 30% of state assets worth $2.4 billion will be listed on international stock exchanges for the first time. This is linked to the establishment of the National Investment Fund and the transfer of management of 13 strategic enterprises to the reputable Franklin Templeton company.
However, Mirziyoyev warned against complacency with Q1 results. Amid escalating global conflicts, contradictions, and leadership struggles, the world economy will not remain as 'calm' as before, requiring all leaders to fundamentally change their work style, approaches, and outlook.
The meeting separately analyzed small and medium business development. This year, 140 trillion soums are being allocated through banks to this sector. For every 1 billion soum in loans to small businesses, 20 permanent jobs were created in Shirin, 17 in Uchquduq, 14 each in Khanabad and Sokh, and 13 in Tamdy district. However, in Uchkuprik, Piskent, Bostanlyk, Karmana, and Kurgan-tepa districts, only 3 jobs on average correspond to 1 billion soum in loans.
Consequently, the need to use artificial intelligence in credit distribution was highlighted. Officials were tasked with training district banks in AI and launching an 'AI Consultant' platform in banks. This platform should analyze project parameters, risks, and market demand to provide ready-made solutions for entrepreneurs seeking loans.
Shortcomings in working with entrepreneurs were sharply criticized. Some leaders were accused of evading responsibility instead of solving entrepreneurs' problems, and when issues reach the national level, they engage in self-justification. For instance, in Nurafshon, instead of helping an entrepreneur unable to start construction for two years due to bureaucratic obstacles, officials searched for how the information reached the president. Additionally, in Guzar, Narpay, Urgench, Yangiyul, and Chinaz, 262 billion soums allocated for business infrastructure remained unspent and projects unstarted. Relevant regional governors were instructed to review the suitability of such leaders for their positions.
Special attention was paid to curbing inflation. The president noted that if the economy grows but inflation also rises, the population and entrepreneurs will not feel positive changes. Since the start of the year, global oil prices have risen by 40%. Due to conflicts, logistics corridors have changed, increasing transportation costs for local exports and imports of essential consumer goods by 25-30%, putting additional pressure on domestic prices.
However, it was stressed that external pressures should not be used as an excuse to neglect inflation control. Given that 70% of consumer basket goods and services are local, officials and governors were tasked with increasing the supply of local products and reducing prices to keep inflation at 6.5% this year.
Industrial and export issues were critically analyzed. Kamashi, Karshi, Mirishkor, Arnasay, Sharof Rashidov, Yangiabad, Navbahor, Kasansay, Kumkurgan, Furkat, Shavat, Shaykhantakhur, and Sergeli districts failed to meet industrial forecasts. The 13 district governors were instructed to take disciplinary measures based on the extent of the shortfall.
Support for exporters also revealed shortcomings. Over the past six months, 908 entrepreneurs signed contracts worth $3.6 billion but could not start exports due to changes in partner situations. Some governors left the situation unattended instead of providing assistance. Consequently, exports in Narin, Kasbi, Sherabad, Yazyavan, and Denau districts more than halved in Q1. In Shakhrisabz, Uchquduq, Parkent, Tashkent district, and the cities of Jizzakh, Navoi, Namangan, Angren, Bekabad, and Nurafshon, export plans fell short of 70%. Leaders of these areas were warned of strict consequences if growth is not ensured in the first half of the year.
The performance of enterprises with foreign investments was also analyzed. Over 18,000 such enterprises operate in the country. However, 526 enterprises with production capacity have never exported. Another 767 foreign-invested enterprises are solely engaged in importing and selling goods. It was emphasized that these enterprises should be engaged, offered projects to set up local production, connected with local entrepreneurs, and assisted in establishing cooperation for spare parts and components production. Enterprises working in the domestic market should be helped to enter export markets. Officials were tasked with developing a special program in this regard.
Shavkat Mirziyoyev stressed that leaders at all levels are personally responsible for results in the current situation. Ensuring economic growth, curbing inflation, creating jobs, increasing exports, improving investment quality, and solving entrepreneurs' problems were defined as the main criteria for evaluating each leader's performance.
Source: www.gazeta.uz