The executive board of directors of the International Monetary Fund [IMF] held a meeting on 14 July this year. It was devoted to a report of the IMF on the results of consultations in 2008 with the Republic of Uzbekistan in accordance with the Article IV of the IMF Charter.

The executive board of directors of the IMF expressed a high opinion about the results of economic development of Uzbekistan characterized by a stable and high pace of economic growth, consecutively strengthening macroeconomic stability and structural reforms which are being conducted successfully.

On the results of discussions, the executive board of directors of the IMF came to a conclusion that the balanced macroeconomic policy and consecutive implementation of structural reforms in Uzbekistan ensured stable and high pace of economic growth, further strengthening of positive balance of trade and payment, the growth of gold and currency reserves, as well as reduction of state debts up to one of the lowest among the countries with transition economy.

The executive board of directors of the IMF noted that Uzbekistan’s economic growth was at the level of nine per cent per annum. This means that Uzbekistan is among the most dynamically developing countries in the CIS. During the discussions, special emphasis was laid on advancing development of production, active attraction of foreign investment which ensured the growth of the GDP thanks to such rapidly developing sectors of the economy as gas and chemical, mining, heavy and light industry, transport, communications and services. The growth in the pace of export also became stable, above all thanks to a significant increase in the share of non-raw goods with a high added value.

The executive directors especially stressed that the tough tax and budget policy made it possible to continue reducing tax burden on the real sector of the economy and population. It also ensured a stable surplus of the state budget. Measures taken in the field of monetary and credit policy in combination with moderate growth of tariffs for energy resources and services made it possible to avoid the influence of a sharp increase in the world prices of energy resources and foodstuffs. The coordinated tax, budget, monetary and credit policy made it possible to accumulate significant currency proceeds from strategic export in the fund of reconstruction and development of Uzbekistan and cut inflation.

Regarding structural reforms, the executive directors of the IMF welcomed the completion of large-scale reforms on reforming cooperative farms and setting up on their basis private farms, consecutive improvement of business environment, as well as progress achieved in the implementation of reforms in the field of tax, budget and treasury.

The directors supported the Uzbek government’s plan on reforming the treasury, further improving tax administration and budget classification. They also welcomed a plan of the Central Bank of Uzbekistan on continuing the capitalization of banks, liberalizing their activities and expanding the role of financial intermediaries. They recommended the government of Uzbekistan to continue carrying out balanced macroeconomic policy that harmonizes with a flexible policy of [currency] exchange, improvement of business environment, liberalization of the trade and carrying out planned structural reforms with the purpose of maintaining the pace of economic growth at the present level in order to further decrease inflation.

The executive board of directors of the IMF confirmed favourable economic forecast of the IMF mission for the current year. They also noted that the impressive results of economic policy, firm adherence of the president and government of Uzbekistan to preserving macroeconomic stability and a progress in structural reforms instil absolute confidence in achieving the results of economic development planned for 2008.