Tashkent, Uzbekistan (UzDaily.com) - Uzbekistan is expected to record a modest GDP growth of 1.5 percent, despite the global economic downturn caused by the outbreak of the coronavirus pandemic, the macroeconomic report of the European Bank for Reconstruction and Development (EBRD) published today said.

The Bank predicts growth of the economy of Uzbekistan at 6.5 percent in 2021 amid recovery in exports and growth in domestic demand.

According to the EBRD’s Regional Economic Outlook report, the economy will slow down due to the impact of measures to curb coronavirus and reduce exports.

The rapid expansion of private sector lending, which was observed before the crisis, can become a source of vulnerability if social distance measures are in effect for a long period of time, which will have negative consequences for the stability of the banking system.

Remittances from Russia, which account for about 8 percent of GDP, are expected to decline, and the tourism and hotel sectors are expected to be hit hard by coronavirus disruptions, the report said.

The report explains that, although China is the main market for exporting goods from Uzbekistan, it accounts for only about 14 percent of total exports, and the country’s overall export structure is more diversified in terms of products and markets compared to other countries of Central Asia.