Tashkent, Uzbekistan (UzDaily.uz) — Nearly a decade of economic reforms has significantly changed Uzbekistan’s development model, but the country now faces the task of finding new sources of sustainable growth and creating more quality jobs for its young population, World Bank Central Asia Regional Director Najy Benhassine wrote.
According to Benhassine, after decades of a largely closed economy, Uzbekistan began opening its markets, strengthening its macroeconomic foundations, liberalizing prices and the exchange rate, and integrating more actively into the global economy.
He noted that Uzbekistan’s GDP has grown by nearly 6% annually on average since the start of the reforms, despite the COVID-19 pandemic. GDP per capita, in his assessment, has more than doubled, from US$2,190 in 2017 to a projected US$4,661 in 2026.
The next phase, according to the World Bank official, requires removing microeconomic constraints on investment in individual sectors while continuing structural reforms. He highlighted the importance of improving the business environment, addressing competition distortions and creating a level playing field for state-owned and private companies.
Benhassine also highlighted demographic factors. According to him, about 60% of Uzbekistan’s workforce is under the age of 30. While public investment can help develop infrastructure and the education system, he said the required number and variety of jobs can primarily be provided by a dynamic private sector.
As one tool for identifying new opportunities, the World Bank has prepared a Country Private Sector Diagnostic (CPSD). The study examines constraints and opportunities for private investment in tourism, logistics and pharmaceuticals.
According to the assessment, implementing the CPSD recommendations in these three sectors could attract several billion dollars in private investment and create hundreds of thousands of jobs by 2030.
Benhassine also pointed to Uzbekistan’s advantages, including its large domestic market, strategic location along emerging trade corridors, cultural and natural potential, and developing industrial base.
In his view, these advantages could support growth in investment, exports and employment if a more predictable, transparent and competitive business environment is established.
The World Bank views the CPSD not as a list of reforms for their own sake, but as a practical basis for unlocking commercially viable opportunities in specific sectors.
Benhassine stressed that the results of reforms should be assessed not only through macroeconomic indicators but also by the economy’s ability to create better-quality jobs, help companies expand and attract foreign investors.
