Outcomes of social and economic development of Uzbekistan in 2007 and priorities of further deepening the reforms in 2008

On February 8 this year the Cabinet of Ministers of the Republic of Uzbekistan held the meeting dedicated to the outcomes of social and economic development of the country in 2007 and significant priorities of further deepening the reforms in 2008.

President of the Republic of Uzbekistan Islam Karimov has taken the floor at the meeting.

The Uzbek Leader has noted that the high steady rate of growth and macro economic stability of economy, decreasing the level of inflation, increasing the employment and the standards of people’s lives are provided for by the result of consistent implementation of measures on acceleration the reforms and liberalization of economy.

By the outcomes of 2007 the GDP of the country grew up to 9,5 percent, volumes of productions of industrial production – 12,1 percent, the production of agricultural goods – 6,1 percent, paid services – 20,6 percent, contractual construction works – 15,7 percent. Thanks to high growth of exports (up to 40,7 percent) the stability of balance of payment and growth of the country’s gold currency reserves have been provided for. The state budget has been fulfilled with surplus, the level of inflation made up 6,8 percent and did not exceeded the forecast indexes.

The favorable investment climate and active implementation of programs on modernization, technical and technological renewal of production provided for the growth of volumes of investment in economy up to 23,0 percent. The volumes of foreign investments substantially increased, in the structure of which the share of direct investments made up 83,0 percent.

The small businesses are now developing and the private sector is expanding as a result of measures adopted on liberalization of economy and creation of favorable business climate. The share of private sector in GDP in 2007 reached 85,0 percent, where almost 80,0 percent of industrial goods, entire volume of agricultural products and retail trade are produced.

The reforms are being continued in the rural area and the farming has become the main producer of agricultural products. The productivity of the main agricultural crops grew up substantially and processing of the agricultural products is developing. The broad net of market infrastructure has been created at the local levels, which render necessary services to agricultural producers. Over 200 agricultural firms on complex processing of agricultural raw materials are now operating.

The implementation of programs on further intensification and expansion of reforms in banking and financing system have provided for further strengthening and expanding the market infrastructure. Last year the charter capitals of commercial banks increased almost two-fold and their cumulative fund raised more than 40 percent and exceeded UZS 1,5 trillion in comparison with 2006. The volume of micro credits allotted to entrepreneurs and private figures rose by 70 percent.

The gradual implementation of development programs, the measures on curbing the tax burden and increasing the size of salaries ensure the raise of employment and progressive rate of people’s welfare. The salaries, pensions, stipends and social allowances increased 1.5-fold last year with the average salaries reaching equivalent to USD 210 in December 2007.

More than 630 000 new jobs were created with two third making up in the rural area. About 65 percent of the newly established jobs account for small entrepreneurship. Sphere of services and home labor make up over 20 percent. Cardinal measures on creating the new jobs allowed to decrease the percentage of unemployed able-bodied population at the end of 2007 to 5 percent.

In his address President has paid an attention to the outstanding problems. In particular he has spoken about the Program of measures on accomplishing the priorities and directions of social and economic development of the country in 2008.

President has underscored that the main task of the heads of all-level bodies of state and self-financing administrations is to ensure the accomplishment of the main priorities for further intensification of reforms set for 2008.

The meeting has also noted that 2008 would become the logical continuation of development and intensification of reforms and processes of advancing the people’s lives, give impetus to the realization of structural transformations and country’s flourishing as a whole.