Uzbekistan’s economic performance has remained strong, with robust growth, narrowing consolidated fiscal and current account deficits, and ample international reserves, stated the International Monetary Fund following to the 2025 Article IV Consultation with the Republic of Uzbekistan.
On 16 June, the Executive Board of the International Monetary Fund (IMF) completed the Article IV consultation for the Republic of Uzbekistan. The authorities have consented to the publication of the Staff Report prepared for this consultation, according to the IMF release.
IMF Executive Board concluded that Uzbekistan’s economic performance remained strong.
Real GDP growth stood at 6.5% in 2024, underpinned by robust domestic demand, and remained buoyant at 6.8% year-on-year in the first quarter of 2025. Inflation had trended downward through end-April 2024 but rose to 10.6% year-on-year in May 2024 that saw the implementation of needed energy price reform. By end-April 2025, it has only marginally eased to 10.1%.
The current account deficit narrowed by 2.6% of GDP to about 5.0% in 2024, driven by strong remittances, rapidly growing non-gold exports, favorable commodity prices, and the unwinding of a one-off spike in imports in 2023.
International reserves have remained ample. The consolidated fiscal deficit narrowed by 1.7% of GDP to 3.2% of GDP in 2024, largely on the back of growth-friendly expenditure measures, although borrowing and spending from the broader public sector were higher than anticipated.
"Despite elevated external uncertainty, growth is projected to stay robust amid ongoing reforms and strong remittances, while inflation is expected to moderate under tight macroeconomic and macroprudential policies," - the report reads adding that the priorities ahead are to cement macro-financial stability and continue with the economic reform agenda to reduce the state’s footprint while fostering private sector-led and inclusive growth.
Real GDP growth is projected to stay strong at nearly 6% this year and next, driven by steady private consumption, investment, and ongoing structural reforms.
Continued tight monetary and macroprudential policies, along with solid fiscal discipline, are expected to bring inflation down to the Central Bank of Uzbekistan’s 5% target by the end of 2027.
The external current account deficit is forecasted to remain around or just below 5% in 2025-26, while international reserves should stay adequate at 9.2 months of imports by the end of 2026.
IMF Executive Directors welcomed Uzbekistan’s positive economic outlook and ongoing progress in its transition to a market-oriented economy. They emphasized the importance of sustaining momentum in structural and institutional reforms, supported by Fund technical assistance, to maintain macroeconomic stability and promote strong, resilient growth.
Additionally, Directors urged further deepening and acceleration of structural reforms, while commending the progress made in the World Trade Organization (WTO) accession and energy sector reform.
Uzbekistan and China have reaffirmed their strategic partnership with fresh momentum, agreeing to fast-track major infrastructure and investment projects including the China–Kyrgyzstan–Uzbekistan railway.
Azerbaijan and Uzbekistan’s foreign ministers have held talks amid escalating regional tensions following the Iran-Israel confrontation.
Azerbaijan and Uzbekistan discuss deepening economic cooperation at the IV Tashkent International Investment Forum.
Speaker of Azerbaijan’s Milli Majlis (National Assembly) Sahiba Gafarova met with Chairman of the Legislative Chamber of the Oliy Majlis of Uzbekistan, Nurdinjon Ismoilov, on the sidelines of the 14th plenary session of the Turkic Parliamentary Assembly (TURKPA) held in Astana, Kazakhstan.
The European Bank for Reconstruction and Development (EBRD) plans to invest another €1.1 billion in Uzbekistan this year, reinforcing its commitment to private sector growth and key infrastructure reforms.
If the European Central Bank adjusts interest rates in the next six months, the move would likely be a cut, ECB policymaker Francois Villeroy de Galhau said on Thursday.
Iran's foreign minister is expected in Istanbul on Saturday for a key Organisation of Islamic Cooperation (OIC) council meeting as regional tensions rise over Israel's strikes on Iranian nuclear sites.
The US Embassy in Qatar has temporarily barred its personnel from entering Al Udeid Air Base due to rising regional tensions linked to the ongoing conflict between Israel and Iran.
Wizz Air Abu Dhabi, the UAE’s ultra-low-fare national airline, has officially launched flights from Gabala, adding a second Azerbaijani city to its growing network and becoming the only low-cost carrier to connect the region with Abu Dhabi.
The World Bank has approved a $640 million loan to Bangladesh to help improve gas supply security and reduce dangerous air pollution in urban areas.
Peace is no longer a dream. It is a discussion. On the streets of Baku and Yerevan, it is also a question, of trust, of foreign interests, and of who truly wants it.
Israeli strikes have reportedly targeted areas near the residences of Iran’s Supreme Leader Ayatollah Ali Khamenei and President Masoud Pezeshkian, according to the New York Times, citing local witnesses.
Azerbaijan Airlines (AZAL) has cancelled certain flights scheduled for 13th and 14th June amid recent escalation of situation in the Middle East and the closure of airspace in several countries for security reasons.
The 2025 G7 Leaders’ Summit was held June 15–17 in Kananaskis, Alberta, under Canada’s presidency. Prime Minister Mark Carney framed the meeting around priorities of protecting communities, energy and climate security, the digital transition, and future partnerships.
Start your day informed with AnewZ Morning Brief: here are the top news stories for June 17th, covering the latest developments you need to know.
Wizz Air Abu Dhabi, the UAE’s ultra-low-fare national airline, has officially launched flights from Gabala, adding a second Azerbaijani city to its growing network and becoming the only low-cost carrier to connect the region with Abu Dhabi.
Israel’s sweeping surprise attack on Iran last week marked a major escalation in tensions, with Israeli Prime Minister Benjamin Netanyahu declaring it had “struck at the head of Iran’s nuclear weaponization program.”
Israel is reportedly pressuring the United States to use its most powerful non-nuclear weapon—the GBU-57A/B Massive Ordnance Penetrator (MOP)—in a strike against Iran’s heavily fortified Fordow Fuel Enrichment Plant, as tensions mount in the Middle East.
Israel’s main hospital in the south sustained a direct missile strike on Thursday amid escalating hostilities with Iran, causing extensive damage and prompting urgent warnings from health officials.
The critical importance of the strong cooperation between Türkiye and Azerbaijan at both regional and global levels has been highlighted and appreciated in Ankara.
If the European Central Bank adjusts interest rates in the next six months, the move would likely be a cut, ECB policymaker Francois Villeroy de Galhau said on Thursday.
Iran's foreign minister is expected in Istanbul on Saturday for a key Organisation of Islamic Cooperation (OIC) council meeting as regional tensions rise over Israel's strikes on Iranian nuclear sites.
The US Embassy in Qatar has temporarily barred its personnel from entering Al Udeid Air Base due to rising regional tensions linked to the ongoing conflict between Israel and Iran.
Wizz Air Abu Dhabi, the UAE’s ultra-low-fare national airline, has officially launched flights from Gabala, adding a second Azerbaijani city to its growing network and becoming the only low-cost carrier to connect the region with Abu Dhabi.
The World Bank has approved a $640 million loan to Bangladesh to help improve gas supply security and reduce dangerous air pollution in urban areas.
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