In 2009 the GDP of Uzbekistan increased by 8.1%

The Cabinet of Ministers of Uzbekistan held a session on 29 January to consider the results of the socioeconomic development of the country in 2009 and the main priorities for 2010.

President Islam Karimov delivered a speech in the session. In particular, he said that thanks to correct development and modernization strategy, and mobilization of efforts for implementation of 2009-2012 Anti-Crisis Program, the country managed not only to withstand the challenges of the global crisis, but ensure stable economic and social growth.

Macroeconomic stability and stable economic growth rates are a proof of the correctness of the economic course chosen by Uzbekistan and acknowledged as the Uzbek model of economic reforms, the President noted.

In 2009 the GDP of Uzbekistan increased by 8.1%, industrial production by 9%, agricultural production by 5.7%, retail trade turnover by 16.6% and paid services by 12.9%.

The state budget has been was implemented with a surplus without cuts in budget spending, while the inflation level did not exceed the forecast and comprised 7.4%, the head of the state said.

The measures to strengthen the banking and financial sector have allowed to double the cumulative capital of the banks in the past two years, while the share of bank credits used for investment purposes has reached 70%.

A complex of measures have been implemented to ensure financial stability of the enterprises of the real sector, mainly through modernization of production, reduction of the products’ cost price, expansion of cooperative ties among local companies and stimulating internal demand. The volume of localized production increased 2.3 times last year, with launch of more than 120 new types of products.

Thanks to support and stimulation of the local exporting enterprises in the conditions of unfavorable conjuncture at world markets, in 2009 the export volumes increased by 2.4%.

Uzbekistan has pursued the policy of structural transformation and diversification of the economy, modernization and technical renewal of production, and attraction of investments, mainly foreign ones. New production capacities were launched last year in the automobile building, construction materials, chemical, food, light, pharmaceutical and other industries. Car and railway transport systems and communications have also seen extensive development.

The anti-crisis measures taken in 2009 have resulted in creating more than 940,000 new workplaces, including over 500,000 in the rural areas.

President Islam Karimov also drew attention to the existing unsolved problems and touched upon the most important tasks in the country’s social and economic development in 2010.

The President entrusted the heads of ministries, economic management bodies, as well as local authorities, to take required measures to continue and deepen reforms in the economy, implementation of strategic investment projects and strengthening the banking and financial system.

Islam Karimov also highlighted the importance of the implementation of all measures included in the 2010 State Program “Year of harmoniously developed generation”, speeding up construction of rural housing and infrastructure, increasing employment and people’s incomes.