NEWS AND EVENTS
December 16, 2005
IMF mission positively assess economic results in Uzbekistan - source
Mission of the International Monetary Fund visited Uzbekistan in the end of November and the first decade of December 2005.
The mission was aimed to study recent changes in economy of the country and assess perspective of its development for following year.
The source said that the representatives of the Fund agreed with the government on assessment of economic results, achieved in nine months and expected results of 2005, as well as prospectus for 2006.
In particular, the mission approved the growth of the GDP in nine months of 2005 at 7.2% and expected growth in 2005 at the level of 7%. The mission noted that figures of the foreign economic sector remained strong and it is expected large trade surplus and gold-currency reserves will increase to the level of 10.4% of the GDP.
IMF experts highly assessed expected results of the State Budget\'s implementation in the country and it is forecasted that the deficit of the budge will make up 0.4% of the GDP, which is lower of forecasted.
The mission supported the reforms in liberalization of tax system, which envisages to cut income tax from 15% to 12%, single social payment rate from 31% to 25%, tax to dividends on deposits from 15% to 10%, full abolishment of ecology tax and other measures.
It was noted that development of new edition of Tax Code, stipulating significant liberalization of tax administration, was timely.
As a whole, on assessment of the mission, the complex of above-mentioned measures will decrease tax burden to enterprises and will stimulate development of production, growth of investments and volume of services not only in 2006 and in medium-term perspective.
The progress was noted in realization of structural reforms, including in simplification of licensing, decreasing reporting for small businesses, number of inspections and simplification of registration process in types of some entrepreneurship activities, sale of shares of state enterprises, continuation of successful process of low-income collective farms and their re-organization into private farms.
In the banking sphere, the mission positively assessed adopted measures on maintaining systematic supply of cash from accounts of the clients by banks and absence of debts on cash payments to population.
Simultaneously, the mission gave recommendations on economy, tax-budget and monetary-credit policies in Uzbekistan.
In particular, the mission recommended to toughen monetary-credit policy through sterilisation of fast growing money supply to avoid inflations and continue work on improvement business climate, improve activity of commercial banks and improve trust to them.
General assessment of the results of the mission allows making conclusion on further deepening structural reforms in economy, strengthening of macroeconomic growth in this and following years. The IMF forecasted the Uzbek economy will grow by 7% or higher in 2006 and proves efficiency of economic reforms.