Cabinet of Ministers sums up country’s development in 1Q 2008

April 19, 2008

Cabinet of Ministers of Uzbekistan held a session on April 18, 2008 to sum up the results of the country’s socioeconomic development in the first quarter of 2008.

According to the statistics, growth of the GDP in the first three months of the year comprised 8.1%, industrial growth 10.6%, agricultural production increased 4.8%, construction works 5%, retail trade 12.7% and paid services 19.8%.

Foreign trade turnover was growing at a stably high rate – 56.1%, mostly because of exports. The inflation level did not exceed the forecast.

The volume of investments increased by 41% in the reporting period, including 56.8% of foreign direct investments.

105 industrial objects were commissioned in the country, including textile enterprises Tagus Textile joint venture, Samo Shertex, Baypak, flour production at Qiziriq Zarafshon Un and roofing slate at Quvasoy Qurilish. General Motors Uzbekistan JV launched the new model of its popular Nexia car.

The share of the small business in the GDP increased by 2% compared to the same period of last year. The volume of credits issued to SME made up UZS 269 billion (USD1=UZS1303), increasing 39.8% against the first quarter of 2007.

About 170.000 new workplaces were created in January-March, including over 67.000 in the service sector and 55.000 in the out-work sector.

The activities envisaged in the “Year of Youth” State Program were being implemented. The program covers measures to improve material and moral support of the young people, create new workplaces for the youth and improve their living conditions and the quality of education worth a total of UZS 1.5 trillion (USD1=UZS1303).

In the reporting period, 3.200 young men who served in the Armed Forces were employed. Young families in the rural areas received preferential credits equal to UZS 1.4 billion (USD1=UZS1303) to purchase cattle.

The Cabinet of Ministers considered implementation of the 2008 Investment Program and programs of modernization and technical re-equipment of the most important sectors of economy.

Another issue of the session agenda was ensuring the stable supply of foodstuffs. The participants analyzed the state of the supply in the regions, cities and districts.

It was noted that measures carried out by the government were ensuring the guaranteed supply of the socially important food products to the population. The country’s industrial potential and reliable reserves of grain, flour, oil and other goods, as well as reserves in the wholesale and retail trade were fully covering the available demand.

New facilities for production of foodstuffs are constantly being introduced – 43 new food enterprises were commissioned in the first quarter alone. At the same time, the assortment of the local production has to be increased and its quality improved, it was said.

The regional, city and district governors were entrusted with maintaining the stable supply of foodstuffs and preventing unjustified growth of prices in trade and in the markets.

The Cabinet made a decision to increase production of vegetables, melons and gourds, cattle produce, vegetable oil and rice.

The commercial banks were recommended to provide farms with credits for purchase of high-quality seeds of vegetables and melons, young plants and cattle.

Solving the employment problem was another issue the Cabinet considered, paying a particular attention to out-work. Cooperation between the enterprises and home-workers in the electro-technical, light and footwear industries, as well as in Bukhara, Namangan and Tashkent regions is insufficient, it was said.

The regional administrations, ministries, departments and economic associations were told to reconsider the parameters of creation of workplaces in the out-work sector for 2008.

The Cabinet of Ministers also considered preparation of the grain combines for the 2008 harvest and improvement of the reclamation of irrigated lands.