Speaking about the results of the country’s socioeconomic development last year, the head of the state said industrial production grew by 12.1%, agricultural production by 6.1%, paid services increased by 20.6% and contract-based construction works by 15.7%.

High export growth (40.7%) ensured stable balance of payment and increase of the gold reserves.

The inflation rate made up 6.8% and did not exceed the forecast, Islam Karimov said.

Favorable investment climate and realization of the industrial modernization program ensured 23% growth of investments in the economy. Foreign investments increased considerably, with FDI accounting for 83%.

The share of the private sector made up 85% of the GDP, 80% of industrial production and 100% of agricultural production and retail trade.

Reforms in agriculture continued last year, and farms became the main producers of the agricultural products. A wide network of market infrastructure has been created in the regions of the country, which provide required services to agricultural producers. More than 200 agro firms deal with complex processing of the agricultural products.

In the banking sector, charter capitals of commercial banks increased almost two times, while their cumulative capital grew by more than 40% against 2006 to 1.5 trillion soums. The volume of micro credits issued to entrepreneurs and individuals increased by 70%.

The salaries, pensions, stipends and social allowances increased 1.5 times last year, with the average salaries reaching US$210 in December 2007.

A total of more than 630,000 new workplaces were created, two thirds of which were in rural areas. About 65% of the new jobs were in the small entrepreneurship and service sectors, and more than 20% in the out-work sector.

The cardinal measures taken to create new workplaces allowed reducing the number of unemployed people to 5% at the end of 2007.

In his report, President Islam Karimov also spoke about the existing problems and touched upon the Program of measures to implement priorities and directions of socioeconomic development for 2008.