On January 20, Moody's increased the credit rating of Uzbekistan from "B1" (positive outlook) to "Ba3" (stable outlook). This was reported by the Ministry of Economy and Finance.
The credit rating is re-evaluated every two years, and the country provides the agency with the latest macroeconomic changes in the country and ongoing reforms annually.
In 2022, Moody's downgraded 36 countries' ratings or rating expectations.
According to the agency, the economic growth of Uzbekistan in 2023 is forecast to be 5 per cent.
The Moody's report lists the following as factors that increase the country's credit rating:
- The reforms aimed at creating a strong competitive environment in the economy and financial sector are implemented without harming the state's fiscal situation;
- The dependence on the external debt of the state to finance the deficit is reduced through the mobilization of domestic opportunities for financing the fiscal deficit and the development of debt attraction in the national currency.
The following factors are noted as factors that lower the country's credit rating:
- As a result of the ongoing slowdown of real economic growth and weakening of fiscal indicators, risks related to macroeconomic stability increase compared to agency expectations;
- An increase in the current account deficit and a disproportionate increase in foreign investments threaten the country's external position.
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