News dalla rete ITA

2 Luglio 2021

Uzbekistan

UZBEKISTAN-ECONOMY-INVESTMENT

EAEU countries could invest $1 bln-$1.5 bln in Uzbekistan, adding 0.3-0.4 pp to GDP growth - EDBEurasian Economic Union countries could invest $1 billion-$1.5 billion in Uzbekistan, adding 0.3-0 4 pp to its annual real GDP growth, the Eurasian Development Bank (EDB) said in a report titled "Uzbekistan and the EAEU: Prospects and Potential Impact of Economic Integration."The EDB believes that Uzbekistan is an "attractive business and FDI destination for the current EAEU member states." "Companies from EAEU countries are interested in building up cooperation with the country's enterprises," it said."Access to the common EAEU labor market would generate additional remittances to Uzbekistan at an average of $1.5-2 billion per year. This this should add 0.3-0.4 pp to annual real GDP growth. In addition, labor migration to EAEU member states should help to mitigate socio-economic tensions in the country caused by unemployment and underemployment," the EDB said."Another significant benefit from deeper integration for Uzbekistan is the possibility to boost exports to the current EAEU member states by an additional $1.2 billion. By comparison, in 2020 the country's exports to the EAEU totalled $3 billion. Increased supply by Uzbekistan's exporters is possible not only to Russia as the key trading partner but to all EDB member countries," it said."As for the current EAEU member states, their full integration with Uzbekistan should also stimulate exports to its large consumer market. EDB analysts estimate the unrealized potential of EAEU exports to Uzbekistan at $1.6 billion," it said."Another advantage of the EAEU member states' economic integration with Uzbekistan should be access to its labor resources and raw materials. This is expected to foster economic cooperation within the EAEU. The free movement of goods, services, capital, and labour should help to promote the expansion of businesses in Uzbekistan. For the Union as a whole, resource crossflows will improve the efficiency of the industrial base and make its goods more competitive," the bank said."Facilitating access to the EAEU labor market for migrant workers from Uzbekistan should help offset labor shortages in the Union in several sectors," it said."It would be difficult to facilitate an efficient regional development without Uzbekistan, which is a major and strategically located player in Central Asia," said Evgeny Vinokurov, EDB and EFSD Chief Economist. "This fully relates to the transport, logistics, and the water and energy complex," he said."Uzbekistan is one of the key countries at the Central Asian crossroads of international West-East and North-South transport routes. The country's integration into the EAEU should facilitate the completion and operation of the Trans-Eurasian transport corridors, among other things, through participation in One Belt, One Road Initiative. Alignment of Uzbekistan's interests with those of the EDB member countries and intensification of their collaboration will improve the chances of raising additional funding for the republic's transport and logistics infrastructure," the bank said in the report."The lack of investments in Uzbekistan's transport and logistics infrastructure directly impacts the time en route and quality of transport service, and hikes transport and network operating costs. As a result, the economy does not fully benefit from its potential and regional trade. According to the report, the funding needs of Uzbekistan's transport infrastructure until 2030 may amount to about 2.1% of GDP per year," it said.Uzbekistan's 2021 state budget projects GDP growth of 5.1% this year, 5.8% in 2022 and 5.4% in 2023. The economy grew just 1.6% in 2020 due to the pandemic, compared with 5.6% in 2019. Inflation was 15.2% in 2020 and 17.5% in 2019. (ICE ALMATY)


Fonte notizia: Interfax