Uzbekistan’s economy to grow 6.5% in 2023-2024, EBRD says

Uzbekistan’s GDP growth is expected to reach 6.5% in 2023 and 2024, driven by strong domestic demand, nominal wage increases, and credit growth, according to the European Bank for Reconstruction and Development’s (EBRD).

“Sectors such as retail, construction, services, and agriculture are performing very well. Initial public offerings (IPOs) and privatizations could boost expectations,” EBRD said.

“A further decline in remittances (especially from Russia), aging infrastructure, and water supply issues are among the factors that could hinder growth,” EBRD warned.

The recent wave of economic growth in the Central Asian countries is likely to continue, driven by government spending, the reopening of China, intermediate trade with Russia, as well as remittances, and the relocation of tourism and business from Russia.

However, the regional investment plan indicates that high borrowing costs may affect the volume and willingness to invest in the region.

At the same time, recent disruptions in water and energy supply may lead to long-awaited tariff reforms as well as improved resource management.