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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT MAY 2005
“TOSHKENT” REPUBLICAN STOCK EXCHANGE
ECONOMIC AND POLITICAL DEVELOPMENTS
Politic and Economic Environment:
Uzbekistan is one of the more prosperous of
the Central Asian transitional economies. A
wealth of mineral, energy, and agricultural
resources, coupled with one of Central Asia's
largest populations, provide the ingredients
for a burgeoning economy. The agrarian
sector is the backbone of the Uzbek
economy, making up 30% of Uzbekistan's
GDP in 2001 and 30.6% in 2002. Uzbekistan
is one of the world's largest cotton producers
and exporters and produces a significant
amount of gold and natural gas. The country
has more than tripled its liquid hydrocarbon
production since independence.
President Karimov has moved, slowly, to
liberalize the depressed economy. Despite
the possibility of social unrest if reforms lead
to temporary lower living standards and
unemployment, he promised to extend
privatization, assist small businesses, and
free the Uzbek currency in order to win IMF
approval.
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Economic Performance:
GDP grew 4.2% in 2002, sparked by
industrial production growth of 8.5% and
agricultural production growth of 6.1% due to
a good harvest. The monthly inflation rate
went down to 1.6% in 2002 from 1.9% in
2001. The national budget was executed with
a deficit of 0.8% of GDP, beating the 2%
benchmark approved by parliament. The
deficit was financed mainly by receipts from
privatization and from Central Bank loans.
The impending privatization of Uzbek’s gas
utilities will speed up the creation of a market
environment in the gas sector. This should
inject some much-needed FDI into the
economy. 1
1 Economic and Political Overview, County Watch
Incorporated, 2005
Key Information Contacts
Ministry of Finance www.mf.uz/eng
National Bank of Uzbekistan http://eng.nbu.com/about/history/index.php
State Central Securities Depository www.deponet.uz/english.shtml/
Portal of the State Authority www.gov.uz/en/
ECONOMIC RATIOS
Domestic
savings
Uzbekistan
Lower-middle-income group
Trade
Indebtedness
Investment
GROWTH OF INVESTMENT AND GDP
(%)
18
16
14
12
10
8
6
4
2
0
97
GDI GDP
98 99 00 01 02 03
* World Bank reports