Left Menu
Development News Edition

Uzbekistan economic growth in 2020 slowing industrial output

“While our report estimates reduced growth this year, it is expected to rebound in 2021 with anticipated recovery in services and industry,” said ADB Country Director for Uzbekistan Cindy Malvicini.

ADB | Tashkent | Updated: 15-09-2020 20:47 IST | Created: 15-09-2020 20:47 IST
Uzbekistan economic growth in 2020 slowing industrial output
In an update to its flagship annual economic publication, Asian Development Outlook (ADO) 2020, ADB forecasts Uzbekistan’s GDP growth at 0.5% in 2020, down from the 1.5% forecast in June. Image Credit: Twitter(@ADB_HQ)

Economic growth in Uzbekistan is projected to further decelerate this year as a result of the coronavirus disease (COVID-19) pandemic, weak demand, slowing industrial output, and a decline in services, according to a new report released by the Asian Development Bank (ADB).

In an update to its flagship annual economic publication, Asian Development Outlook (ADO) 2020, ADB forecasts Uzbekistan's GDP growth at 0.5% in 2020, down from the 1.5% forecast in June. However, GDP is expected to rebound strongly to 6.5% in 2021, consistent with ADB's projection earlier this year.

"While our report estimates reduced growth this year, it is expected to rebound in 2021 with anticipated recovery in services and industry," said ADB Country Director for Uzbekistan Cindy Malvicini. "We continue to stand by the people of Uzbekistan, helping to mitigate the adverse health, social, and economic impacts of the disease, so that the country can overcome the pandemic and the economy can recover as quickly as possible."

The bank's forecasts for inflation remain unchanged at 13% in 2020 and 10% in 2021. Pandemic-related disruptions raised food price inflation in the first 7 months of 2020, while inflation for other goods and services in the same period slowed. Meanwhile, depreciation of the Uzbek sum year on year against the US dollar rose from 2.5% in the first half of 2019 to 6.7% this year.

Uzbekistan's current account deficit widened to 7.7% of GDP in the first half of 2020 from 6.8% in the same period last year, as travel restrictions and weakness in the Russian Federation cut remittances, while exports of goods fell by 19.7% with lower demand and prices for natural gas and copper. Supply chain disruptions cut imports of goods by 14.1%, with notable declines in imports for construction and industry. Exports of services dropped by 38.6%, and imports by 28.4%. With continued weakness in exports and remittances, the bank projects a wider current account deficit in 2020, narrowing in 2021 as exports and remittances recover.


TRENDING

OPINION / BLOG / INTERVIEW

Uganda COVID-19 response: Was off to a good start but reopening dwindled prospects

Uganda has shown success in using health information to enhance efficiency of disease surveillance, reporting and monitoring. The success, however, has critical challenges confronting it as the country resumes normal activities....

New farm bills in India: Focusing on farms or farmers?

... ...

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...

Videos

Latest News

Soccer-Barcelona president Bartomeu resigns after Messi row

Barcelona president Josep Maria Bartomeu resigned from the club on Tuesday ahead of a vote of no confidence that was due to be held next month after some 20,000 fans signed a petition demanding that he step down.The rest of the board of dir...

Comedian Jon Stewart to return to TV on Apple's streaming service

Former Daily Show host Jon Stewart will host and produce a new current affairs series for Apple Incs streaming television service, the company announced on Tuesday.The multi-season series on Apple TV will bring the comedian back to TV on a ...

Brexit talks at most difficult point, European Council President Michel warns- Telegraph

European Council President Charles Michel warned that Brexit negotiations are at their most difficult stage, The Telegraph newspaper reported httpsbit.ly3e4gOBF on Tuesday.Will we get a deal I dont know it will depend on what will be on th...

ANALYSIS-Trump sanctions could give Biden a bargaining chip in deal talks with Iran

The Trump administrations imposition of new sanctions on Iran may have been intended to forestall a new nuclear deal with Tehran if Joe Biden is elected president, but it could backfire instead by strengthening Bidens hand at the bargaining...

Give Feedback