Outcomes of the social and economic development of Uzbekistan in 2006 and priorities of economic reforms in 2007

On February 12 the Cabinet of Ministers of the Republic of Uzbekistan held its session dedicated on the outcomes of the social and economic development of the republic in 2006 and most important priorities of deepening the economic reforms in 2007. The President of the Republic of Uzbekistan Islam Karimov spoke at the session.

The participants of the session noted that in 2006 the country ensured the sustainable growth rates of economy. Thus, the GDP grew by 7,3%, the volume of industrial goods production – by 10,8%, the consumer goods – by 20,6%, the production of agricultural goods – by 6,2%, the paid services – by 19,3%, and the contractual construction works – by 12,8%.
The State budget has been executed with a surplus 0,5% towards the GDP. The inflation rate decreased to 6,8%. The investment climate has improved. At the same time, the scale of the direct foreign investments has also expanded. They have increased by 25,4%. As a result, 68,3% of the total amount of investments has been channeled to the manufacturing sector. About 50% of all investments were directed to the renewal of the technological stock and procurement of the new equipment.

In our country the profound changes are taking place in agriculture. In particular, last year over 74,000 farming entities were established on the basis of 666 shirkat entities. More than half of the newly established farms are those, which base their operations on growing the fruits and vegetables. Besides, the new forms of establishments now appear in the countryside. Nearly 200 agricultural firms were founded in 2006, which are based on the production and thorough processing of the fruits and vegetable products and vine.

The session has also underscored that the year 2006 saw the increase in the volume and amount of the foreign economic activity. The volume of exports of goods grew by 31,5%, while the positive balance of the foreign trade had accounted for about USD 2 billion.
As a result of the purposeful measures undertaken in the sphere of providing the population with jobs, about 570,000 jobs were created in the country, including over 60,000 jobs – created thanks to the cooperation of the home-based labor with the large industrial enterprises. In this, the real wages of the population grew by 36% and the real income – on average by 22%.

In 2006 a big attention was paid in our country to the implementation of the targeted measures on social support of the neediest layers of the population, realization of the purposeful national programs in the sphere of education, cadres training, healthcare and social protection of the people. In particular, last year 6 academic lyceums for 8,000 pupils and 124 professional colleges for 70,000 pupils have been commissioned, 61 new schools were built, 385 schools were fully reconstructed and 530 schools were repaired.
The following directions are defined as vitally important priorities of the economic program for 2007:

First, ensure the sustainable and balanced growth rates, structurization and modernization of economy, technical and technological re-equipment of its most important spheres, further liberalization of the tax policy;

Second, create the maximum favorable conditions for businesses, above all, the private business and gradual decrease of the state’s presence in the economy;
Third, comprehensively strengthen the work on attracting the foreign investments, above all, the direct investments;

Fourth, ensure the gradual rise of remuneration of labor and the quality of the people’s lives;

Fifth, comprehensively support the accelerated development of the small business and private entrepreneurship and on this basis to resolve the issues of employment and raising the well being of the people;

Sixth, further deepen and expand the scale of reforms in the banking and financial system;

Seventh, further deepen the economic reforms in the public utilities.