Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan has ranked among the top three fastest growing economies in Europe and Central Asia for 2024, according to the World Bank’s report on the regional economy.

The report highlights that after a series of crises affecting developing countries in the region, economic growth has begun to stabilize, although at significantly lower levels compared to the early 2000s.

The forecast indicates that economic growth in Europe and Central Asia will slow to 3.3% in 2024, down from 3.5% in 2023, with a further decline expected to 2.6% in 2025. These figures are well below the average annual growth rate of 5.1% observed from 2000 to 2009.

Countries in the region have successfully addressed recent challenges, including high inflation, the impacts of Russian aggression against Ukraine, and slow economic activity growth in the European Union, which is a key export market for the region.

The primary driver of economic growth in developing countries of Europe and Central Asia is private consumption, supported by rising wages, government payments, and decreasing inflation levels. Additionally, remittance inflows have surpassed pre-war levels, continuing to contribute to economic growth in the Western Balkans, South Caucasus, and Central Asia.

In 2024, among more than 20 countries in the region, the highest GDP growth is projected for Georgia (7.5%), Tajikistan (7.2%), Uzbekistan (6%), Kyrgyz Republic (5.8%), and Armenia (5.5%).

Forecasts for 2025 suggest that Uzbekistan could lead the region in economic growth, with an expected GDP increase of 5.8%. In 2026, the bank anticipates Uzbekistan’s GDP will grow by 5.9%.

In Ukraine, economic growth is projected to slow to 3.2% this year (down from 5.3% last year) and to 2% in 2025, due to significant damage from Russian aggression and widespread disruptions in energy supply.

In Russia, growth is expected to decline to 3.2% this year (from 3.6% in 2023) and 1.6% in 2025, attributed to tightening monetary policy and increasing shortages of production capacity and labor resources.

Turkey, the largest economy in the region after Russia, is also forecasted to experience a slowdown in growth to 3.2% this year, down from 5.1% in 2023.

A special section of the report is dedicated to the role of human capital as a factor in economic growth in the region. To accelerate productivity growth in the long term, significant improvements in the quality of secondary and higher education are necessary.

Although the education system in the region provides broad access to education, the challenge lies in the quality, which has declined in recent years. For instance, in the past decade, there has been a sharp decrease in the scores that students from the region achieve in the international PISA assessments, which evaluate the abilities of 15-year-old students.

The unsatisfactory quality of basic education is particularly evident among children from disadvantaged families. Among the shortcomings of higher education systems, the report highlights outdated curricula, a lack of investment in equipment and infrastructure for universities, and a mismatch between students’ knowledge and skills and the labor market demands.