Uzbekistan's economy grew at a slower-than-expected pace in 2024, with official data showing GDP expansion of 5.5%, down from the projected 6%. The slowdown reflects weakening external demand and subdued domestic investment.

Export volumes fell by 2%, driven primarily by declines in cotton and natural gas shipments. Uncertainty in key markets, including Russia and China, contributed to the downturn, while domestic industries faced headwinds from rising costs and regulatory hurdles.

Inflation stood at 9.8%, exceeding the central bank's target range of 8-9%. Food prices surged 12%, eroding household purchasing power and increasing financial strain on the population. The government's efforts to curb price growth have been largely ineffective.

The government has pledged to continue economic reforms, including privatization of state-owned enterprises and anti-corruption measures. However, progress has been slow, and critics argue that the reforms lack transparency and political will.

The construction sector contracted by 3%, exacerbating unemployment concerns. Official unemployment is reported at 7.2%, but unofficial estimates suggest the figure is significantly higher, particularly among youth and rural populations.

International financial institutions project GDP growth of around 5% in 2025, contingent on external conditions and reform implementation. The budget deficit, at 4.5% of GDP, poses a risk to fiscal stability, and the government may face pressure to secure external financing.

Source: www.uznews.uz