Uzbekistan’s economy to grow 5.5% in 2023, World Bank says

The World Bank expects Uzbekistan’s economy to grow 5.5% in 2023 and could gradually accelerate over the medium term, reaching 5.6% and 5.8% in 2024 and 2025, respectively.

Consumption growth will slow in 2023, owing to lower levels of remittances from Russia.

“This year, import growth is likely to accelerate. Its volumes will continue to rise in the medium future in order to keep up with the rate of economic development. As remittances fall, the country’s current balance of payments deficit will grow,” according to the World Bank.

The budget deficit is expected to rise to 5% in 2023 as a result of increased energy sector spending, higher education expenses, public sector wages, pensions, and benefits, and decreased government tax receipts.

“Over the longer term, the government is anticipated to stabilize the budget, decreasing the fiscal deficit to 4% of GDP in 2024 and 3.6% in 2025. This will be owing to less tax breaks for state-owned firms, lower energy subsidies, and more financial earnings from the privatization of public assets,” the World Bank said.

According to the World Bank report, the administration would stick to its own limits on foreign borrowing. However, public debt grew to 36% of GDP in 2023 and is expected to peak at 36.6% the following year.