Uzbekistan's economy is anticipated to grow by 5.3% in 2024, slightly down from the previously expected 5.5%, the World Bank projects. The growth rate is expected to reach 5.5% in 2025 and 5.7% in 2026.
In comparison, global economic growth is forecasted to be 2.6% in 2024, up from the prior estimate of 2.4%. Growth is projected to reach 2.7% in 2025-2026, which remains below the pre-pandemic average of 3.1%. For developing nations, GDP growth is expected to average 4% per year in 2024-2025, narrowly below last year's level. Low-income countries are projected to see growth accelerate to 5% this year, up from 3.8% in 2023.
Global inflation is expected to decrease to 3.5% in 2024 and to 2.9% in 2025, though the reduction is not as significant as previously anticipated, the World Bank noted in its report.
Earlier, Daryo highlighted that Uzbekistan's economic growth remained strong, with real GDP rising by 6% in 2023. This growth was driven by an expansionary fiscal policy, increased fixed investment, and strong private consumption. The International Monetary Fund (IMF) also noted that growth was high at 6.2% y/y in 1Q24.
Despite global economic challenges, Uzbekistan has successfully reduced its poverty rate through robust income growth and an expanded social safety net since 2020. The poverty rate fell from 17% in 2021 to 11% in 2023.
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