Tashkent, Uzbekistan (UzDaily.com) -- The Center for Economic Research and Reforms published an annual report that analyzed the macroeconomic indicators of Uzbekistan for 2023.

The Center for Economic Research and Reform (the Center) has prepared the Annual Macroeconomic Review of the Economy.

The Macroeconomic Review is a regular publication of the Centre. It presents an operational overview of the macroeconomic situation in Uzbekistan and provides assessments of its development in the short term.

The publication analyzes such economic indicators as GDP, industry, investment, consumer spending, inflation, interest rates, lending, domestic and foreign trade, state budget revenues and expenditures, and the cyclically adjusted fiscal balance.

The review covers the state of the national economy and monitoring of main trends, including issues of state policy in the monetary and fiscal spheres that shape short-term economic prospects.

The purpose of the review is to assess development prospects in the field of economic policies to maintain macroeconomic stability and promote stable socio-economic development.

In 2023, Uzbekistan’s GDP growth amounted to 6.0%. The growth driver was investments, which grew by 21% and reached US$30 billion. At the same time, the growth of foreign direct investment and loans amounted to 56.2%, reaching US$14.2 billion. According to preliminary data, the negative foreign trade balance in relation to GDP amounted to 15 .1%, and the consolidated budget deficit is 5.5%.

According to CERR estimates, in 2024 annual economic growth in Uzbekistan is projected to be within 5.8%. At the same time, the growth in population consumption and investment will be 4.8% and 7.6%, respectively.

Key findings of the review:

accelerating investment growth in 2023 has become one of the main drivers of economic growth. In particular, in 2023, the volume of total investments amounted to 352.1 trillion soums (US$30 billion), in real terms they increased by 22.1%;

The results of the Center’s Consumer Sentiment Index also show high optimism in the economy. The increase in household expenses can be explained, among other things, by the increase in allocated loans. In particular, in 2023, 100.2 trillion soums of loans were issued to the population, this figure increased by 1.5 times compared to 2022;

the largest contribution to GDP growth among economic sectors was made by the manufacturing sector, agriculture, forestry and fisheries, as well as other service sectors;

the growth of consolidated budget revenues in 2023 was 12.3%, which is lower than the growth of nominal GDP (19%). It is expected that in 2024, nominal GDP growth (22.1%) will be higher than the growth of budget revenues (16.8%);

Consolidated budget expenditures amounted to 379.2 trillion soums or 35.6% of GDP. In 2023, cost growth slowed to 17.9%;

The growth of loan balances in 2023 reached 20.9%, slightly accelerating compared to the last 2 years;

Foreign trade turnover in 2023 amounted to US$62.6 billion. Of which, exports were US$24.4 billion and imports were US$38.1 billion. Compared to 2022, exports increased by 23.8% and imports by 24.0%;

If in 2018-2023 GDP in dollar terms increased by 1.7 times, exports during this period excluding gold increased by 1.5 times, and imports by 2 times. In 2023, the negative trade balance reached US$13.7 billion or 15.1% of GDP;

The country’s trading conditions continue to decline. If in 2023 this indicator worsened by 1.2%, and since 2018 it has decreased by 12.4%.