Tashkent, Uzbekistan (UzDaily.com) -- Results of social-economic development of Uzbekistan in the first quarter of 2010 shows continuation of the positive trends in economy, achieved due to implementation of the Programme on preventing and neutralizing consequences of global financial-economic crisis. The programme was designed for 2009-2012.

I. Main macroeconomic indicators
In the first quarter of 2010, the sustainable development of economy was kept, which was achieved due to implementation of complex measures directed at deepening reforms of economy, modernization of the country and full realization of Anti-crisis programme for 2009-2012. This helped Uzbekistan to achieve high and sustainable growth of economy, efficiency and macroeconomic balance.

In the result, the growth of the gross regional product (GDP) made up 7.6%, industrial output – 7%, including consumer goods – 8.9%, agriculture output – 6.1%, construction works – 20.1%, retail trade turnover – 8.3%, service – 12.2%, paid services to population – 13.4%, export – 22.1%.

Macroeconomic balance was ensured with relatively low level of inflation – 3% and state budget was implemented with 0.2% surplus to GDP.

Main indicators of social-economic development of Uzbekistan in the first quarter of 2010 (in % to the same period of 2009)

Indicator	Growth rate
Gross regional product	7.6
Industrial output	7.0
Consumer goods	8.9
Agriculture output	6.1
Construction works	20.1
Retail trade turnover	8.3
Paid services	13.4

II. Ensuring financial-banking sustainability
Charter capital of the banking system at the end of the first quarter of 2010 rose by 46.4% compared to similar period of 2009, the balance of customers’ deposits in banks – by 56.7%, population resources at the commercial banks – 68.7%. Share of term and saving deposits of population in credit organization made up 32.4%. In the result, aggregate assets of the bank grew by 4.29 trillion soums or by 33.3% year-on-year.

Further the growth of the resource base in the banks allowed to increase crediting of real sector of economy. The balance of loan investments of the banks, directed at real sector, in the first quarter of 2010 rose by 11.4%. At the same time, 82.1% of these loan investments fell to share of long-term investment loans..

Share of loan resources, presented by commercial banks for realization of investment projects, in total capital investments made up 5.5% against 2.1% in the same period of 2009.

In the first quarter of 2010, the loans of commercial banks for 737.2 billion soums were directed to implementation of investment projects, including modernization and re-equipment of enterprises, which is 1.5 times up year-on-year.

In order to develop cashless payment system, the number of emitted banking payment cards increased by 1.74 million year-on-year in the first quarter of 2010 to 6.29 million units. Number of installed POS-terminals grew by 32.700 units to 60,840.

In the result, the cashless payments with banking payment cards rose by 2.9 times in the first quarter of 2010. Share of cashless payments for goods and services rose from 67% in January-March 2009 to 86% in January-March 2010.

III. Continuation of policy on deepening structural reforms in economy to ensure the growth of the country’s competitiveness
The largest growth rates were recorded in timber processing and cellulous-paper industry (25.3%), light industry (11%) and food industry (8.8%), machinery and metal processing – 7.9% in the first quarter of 2010.

In order to stimulate non-inflation internal demand for locally made products and services, expanding and establishing cooperation among key industries, attracting small businesses to this process, new approaches and criteria of inclusion projects to the Localization Programme were developed. Based on this, new Localization Programme on production of ready products, spare parts and materials on the base of industrial cooperation for 2010 were developed and approved.

In January-March 2010, the products for 996 billion soums were realized within the 699 localization projects, which is up 23.2% year-on-year.

The highest growth in the volume of goods production was observed at the enterprises Uzmontajspetsstroy (2.1 times), Uzbekcharmpoyabzali (1.9 times), Uzkimyosanoat (1.7 times) and Uzstroymaterially (1.3 times).

The commercial banks allocated loans for 104.3 billion soums to enterprises to purchase equipment, raw and other materials to expand production of food products as of 1 April 2010.  The loans worth 12.6 billion soums (2.2 times up year-on-year) were allotted to create poultry farms and 4.9 billion soums (1.7 times up year-on-year) to creation of greenhouses.

The volume of consumer goods output rose by 8.9%, including food goods by 8.7% and non-good products by 9% in the result of the adopted stimulating measures on broadening production of non-food and food products in the first quarter of 2010.

Realization of additional measures on stimulating of goods export, promotion of ready products to external markets, as well as increase competitiveness of local goods helped to increase the volume of exports and services in the first quarter by 22.1% year-on-year and achieve current account balance surplus at the volume of US$1.081 billion.

The high growth rates were achieved in export of cotton-fiber, food products, ferrous and non-ferrous metals. The export of such products as carbamide, aВозрос экспорт физических объемов таких видов продукции, как carbamide, ammonia, soda ash, copper alloys, cotton fabrics and yarn, cars and others.

In order to support small businesses, the measures on expanding access of small businesses to credit resources in the first quarter of 2010. The volume of issued loans by commercial banks to the small and private businesses made up 625 billion soums or rose by 1.4 times year-on-year, including 116.5 billion soums of microloans with the growth rate of 1.5 times.

In the first quarter of 2010, total number of small businesses (without farm entities) rose by 1.3% to 227,200. Their share in GDP rose from 36.2% in January-March 2009 to 28% in the same period of 2010, in industrial output – from 14.1% to 15.8%, in employment from 73.1% to 74.3%

At the same time, the growth rate of industrial output by small businesses made up 25.9%, which is higher than average rate in industry.

About 4.4 billion soums were realized to implement programmes on creation of service infrastructure in the first quarter of 2010 due to resources of the Employment Fund, Microcredit Bank and other commercial banks.

In the result of the growth of subscribers number, using mobile communication services and the level of digitalization of automatic switching centers, the communication and information services rose by 6.1%.

The measures on developing micro and consumer crediting, improvement of payment system, as well as development of infrastructure of financial institutes allowed to increase the volume of finance-banking services by 24.6%.

Introduction of over 320 new retail trade enterprises and 45 catering enterprises allowed to increase trade and catering services by 12.2%. Besides, about 440 consumer services were commissioned in the first quarter of 2010.

The high growth rate of rendered services was recorded in the rural areas. In the result of introduction of new retail trade, catering and consumer services, about 6,300 new jobs were created. Share of services in rural areas on all types made up 27%.

The volume of rendered services in overall economy grew by 12.2%, share of this sphere in the GDP comprised 46.7%.

IV. Realization of active investment policy
The investment policy in the first quarter of 2010 was directed at the implementation of the strategically important projects, directed at modernization and re-equipment of leading basic industries, development of modern network of transport and infrastructure communications.

In the result, the capital investments at the size of 2.91 trillion soums were used in the first quarter of 2010, which is 1.2% more year-on-year. About 79.5% of all investments were directed to construction of production capacities.

In January-March 2010, the volume of used foreign direct investments made up US$929.8 million with the growth rate of 2.6 times year-on-year. Its share in total volume of foreign investments and loans reached 94.8% against 85.3% in the same period of 2009.

During the reporting period, Fund for Reconstruction and Development of Uzbekistan co-financed six projects for total sum of US$196.4 million.

In the first quarter, 118 production objects were commissioned, which ensured creation of fixed funds for 18.8 billion soums, including 15 objects in light industry, 41 – in food industry, 56 in construction materials industry and two in machinery.

In order to create modern transport communication system, the construction and reconstruction works of motor roads of international and state importance for 32.164 billion soums, which is up 50.3% year-on-year. The construction of 8 road infrastructure and service objects along the Uzbek National Highway was completed.

Uzbekistan used US$62.4 million on projects directed to development of railway transport, 542 railway cars were repaired and modernized, and US$10.64 million was directed to purchase two high-speed locomotives Talgo-250.

In the first three months of 2010, about 14,800 tonnes of cargo and 4,200 passengers (up 13.5% year-on-year) were transported through Navoi International Airport. About 14 flights are carried out to Bangkok, Dehli, Mumbai, Frankfurt, Seoul, Brussels and Milan each week.

Rendering traffic, loading and cargo storage services have been started at the Angren Logistic Center. The center transported over 707,500 tonnes of cargo in the first quarter of 2010.

Uzbekistan installed 1,477 million electronic electricity meters in order to modernize electricity production, decrease power intensity and introduction of energy saving technologies. About 237,500 electronic electricity meters were installed at the sites of business entities. The electronic electricity meters help to determine exact volume of consumer electricity by consumers. In the result, Almalyk Mining and Smelting Combine decreased electricity consumption by 25.2 kilowatt-hour and Navoiazot – 13.5 million kilowatt-hour.

Assembly works were completed within the project on introduction of automated system on control and accounting electricity (ASCAE) in Qoqand and Ferghana power stations. In the first quarter of 2010, about 185,500 modern meters, which compatible with the ASCAE, were installed.

In cooperation with DOOJIN Со., Ltd (Korea), the project on construction of experimental wind power facility with the capacity of 750 kilowatt in Charvak water reservoir has been started.

In the first quarter of 2010, the repair works for 12.9 billion soums were carried out at 236 land-improvement objects. This allowed to clean lodgement-drainage networks with extension of 3,174.5 km. The construction and re-construction of lodgement-drainage networks with extension of 39.8 km.

V. Continuation of economic reforms in agriculture, speeding up construction of habitation and social infrastructure in rural areas
In the first three months of 2010, 420 houses were commissioned in the result of the realization of additional measures on expansion of contractors’ work on turn-key basis. All standard houses were commissioned in Kashkadarya, Samarkand, Bukhara, and Ferghana regions.

Overall, 1.594 million square meters habitations were commissioned in the first quarter of 2010 (up 10.6% year-on-year), including 1.087 million square meters in rural areas (11.1%).

Thirty-three on production of construction and finishing materials were commissioned in Uzbekistan in the first quarter. Eleven of them is enterprises on brick production with the total capacity of 70 million units a year.

In the result of implementation of the project on improvement of access of population to quality drinking water, 319.1 km of water pipes were constructed in Uzbekistan, of which 220.3 km in rural areas.

Uzbekistan developed a special programme to satisfy demand of population with food products and providing processing enterprises with raw materials. The programme envisages production of 5.865 million tonnes of potato, 1.122 million tonnes of melons and gourds, 1.575 million tonnes of fruits, 937,000 tonnes of grapes, 1.447 million tonnes of meat (in live weight) and 6.165 million tonnes of milk.

In the result of the adopted measures, the volume of agriculture production increased by 6.1%. The production of vegetables increased by 14%, meat by 6.3%, milk by 6.5% and eggs by 12.2%.

Within the programme on developing cattle breeding, 6,740 heads of cattle were realized through auctions to farm entities and auxiliary entities. About 2,723 cows were handed over to low-income families for free.

Commercial banks, Employment Fund of the Labour and Social Welfare Fund allocated 8 billion soums to purchase of cattle in the first quarter of 2010.

In the result of adopted measures, number of cattle reached 8.516 million, or grew by 6.3% yer-on-year. Fifty-nine poultry farms were created and number of poultry reached 31.2 million or grew by 12.8%.

In the first quarter of 2010, 31 processing enterprises were created in Uzbekistan in January-March 2010, of which five processes fruit and vegetables, 11 – meat and 15 – milk.

VI. Ensuring growth of employment and increasing life quality of population

In January-March 2010, 215,400 new jobs were created in Uzbekistan, of which 150,100 or 69,700 in rural areas. Significant number of jobs (135,400 or 62.9% of total created jobs) were created by small and private businesses, including 70,000 (32.5%) in service sector.

Due to attraction of business entities and local administrations to realization of measures on expanding out-work and craftsmanship, as well as family business, 53,100 new jobs were created, including 18,600 in cooperation with enterprises, 11,800 in line with contracts and family business. As of 1 April 2010, 200,000 people are out-workers.

Active policy in labour market assisted to the growth of population employment by 3% and the number of employed increased by 325,200 to 11.3 million people. The number of employed grew in construction (5.8%), communal and personnel services (5.3%), transport and communication (5.2%), trade and catering (5.3%).

Systematic and complex measures on ensuring employment and social protection helped to keep the trend on income growth and life quality of population. The real monetary income per capita grew by 19.6% year-on-year in the reporting period.

In the first quarter, 1.4 trillion soums and US$25,4 million were directed to implementation of the state programme “The Year of Harmonically Developed Generation”. Young families received soft mortgage loans for 23.8 billion soums in January-March 2010. About 106,800 jobs were created for youth.

Based on report of
Ministry of Economy of Uzbekistan
State Statistics Committee of Uzbekistan