Economy of Uzbekistan is at difficult stage - Minister of Finance Timur Ishmetov

The economy of Uzbekistan is at a difficult stage - Minister of Finance Timur Ishmetov
At the II Economic Forum of Uzbekistan, held in Samarkand, the Minister of Finance Timur Ishmetov expressed his opinion on what aspects should be paid more attention to in the implementation of economic reforms in the coming years, and the impact of the ongoing global recession on the economy of Uzbekistan.
"Our country has seen economic growth this year. However, when the crisis started, we could not give good expectations. During the pandemic, which lasted from 2020 to 2021, we realized that the most correct way to solve existing problems is to continue structural reforms. 3-4 years ago we started to pay more attention to borrowing. We don't have a lot of debt. We were told that all our partners and investors are ready to support us.
However, the economy of Uzbekistan is currently at a difficult stage. We are facing new challenges. Against the backdrop of the global recession, borrowing is becoming more expensive, and interest rates are rising. Our financial buffer is limited. At the same time, it is necessary to reduce budget expenditures.
This year, the budget deficit will be around 4 percent. We are facing a dilemma for next year. It will not be easy to keep the deficit at 3 percent. The pressure is too great. Keeping inflation down should be the main issue for us now. Otherwise, we will not be able to finance the infrastructure from the state budget. Therefore, we must reduce all our expenses.
In order to get out of this situation, the main attention should be focused on structural reforms that provide for the use of private funds. It should also be said that due to the change in the flow of investment and the regional crisis, the implementation of reforms has become more complicated. This is not a positive process. Even in this situation, we must not stop implementing reforms so that private investors can come to the country and participate in the processes.
According to the analyzes of the World Bank and ADB, it is necessary to create equal competitive conditions for the public sector and the private sector in our country. We need to liberalize prices in some industries. We need to finish our privatization program, which has started well, in the same way. If reforms are stopped or delayed, there will be no chance of sustaining economic growth. If we continue these reforms, we will maintain economic growth of 5 percent and above this year.
However, we need to focus on 2024-2025. If we continue the reforms, we will also maintain the economic growth. If we delay or postpone this work, there is no chance of maintaining economic growth from the next two or three years. In this regard, the situation in many foreign countries is different. However, we need to continue reforms that ensure the economy relies on private funds. This is the only way we should focus," said the finance minister.