The European Bank for Reconstruction and Development (EBRD) has recently revealed that Uzbekistan can expect a positive impact on its growth prospects through IPO and privatization. The country's GDP is predicted to increase at a yearly rate of 6.5% for the next two years, thanks to strong domestic demand fueled by increasing nominal wages and credit.
The EBRD highlights retailing, construction, services, and agriculture as sectors with impressive results. Proper organization of IPO and privatization can also enhance growth prospects.
However, the decrease in remittances, primarily from Russia, and infrastructure and water supply deterioration may threaten economic growth.
The EBRD also notes that Central Asia's economies showed robust growth in the first half of the year, attributed to the resumption of international trade and tourism, high migration, and remittances from Russia. The region's GDP is expected to increase by 5.7% this year and 5.9% in 2024. The investment bank expects the recent acceleration of economic growth in Central Asia to continue.
Earlier, Daryo reported that Uzbekistan's Uztemiryulcontainer would undergo partial privatization, with a 35% stake up for grabs. Applications are open until October 23.
The "Uzbekistan - 2030" plan outlines the country's development goals for the next seven years and how they will be achieved by 2023. First, the aim is to increase the capital market's size to $10bn and its free float to GDP ratio to 10.5%. Second, the People's IPO program will continue, and mechanisms will be introduced to encourage public participation in IPOs. Third, foreign custodians and banks will be encouraged to participate in the local capital market through suitable infrastructure. Lastly, responsibility for the market regulator will be transferred from the state to private associations of capital market participants.