The Central Bank of Uzbekistan has put forth a proposal aimed at reducing subsidies for energy resources and social expenses as part of its monetary policy for the period of 2024 to 2026. This initiative, the bank believes, will have a significant positive impact on budget consolidation.
While advocating for a reduction in subsidies and social expenses, the Central Bank also underscored the importance of maintaining state investments. These investments have a long-term positive impact on economic growth. This aligns with the country’s current economic trajectory, with the GDP expected to grow by 5% in both 2023 and 2024.
In the event of energy tariff liberalization, the Central Bank emphasized the necessity of maintaining targeted support for the population. This recommendation comes at a time when Uzbekistan’s GDP per capita rose by 9% in 2022 but remains the lowest among comparable countries.
The proposed measures by the Central Bank are part of a broader economic strategy that Uzbekistan has been pursuing. The country has developed an ambitious set of reforms in recent years, with more needed to continue to spur private sector-led growth and job creation.
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