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Monthly Report on Uzbekistan July 2020

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Monthly Report on Uzbekistan July 2020 MONTHLY REPORT ON UZBEKISTAN JULY 2020 Europe-Uzbekistan Association for Economic Cooperation (EUROUZ) 10-08-2020 Brussels, Belgium Monthly Report on Uzbekistan July 2020 TABLE OF CONTENTS 1. SPECIAL NEWS .................................................................................................................................................. 3 COVID -19 UPDATE ....................................................................................................................................... 3 2. ECONOMIC OVERVIEW ..................................................................................................................................... 3 2.1 LOCAL LEVEL ................................................................................................................................................ 3 2.2 REGIONAL COOPERATION ............................................................................................................................ 7 3. MARKET DEVELOPMENT BY SECTORS ............................................................................................................. 10 3.1 INDUSTRY AND CONSTRUCTION ................................................................................................................ 10 3.2 TOURISM AND AVIATION SECTOR .............................................................................................................. 11 3.3 HEALTHCARE ............................................................................................................................................. 11 3.4 AGRICULTURE AND FOOD .......................................................................................................................... 12 3.5 ICT SECTOR ................................................................................................................................................ 13 3.6 AUTOMOBILE SECTOR ................................................................................................................................ 15 3.7 INVESTMENT AND FINANCE ....................................................................................................................... 16 3.8 UTILITY SYSTEM ......................................................................................................................................... 20 3.9 TRADING SECTOR ....................................................................................................................................... 22 3.10 ENERGY AND MINING SECTOR ................................................................................................................... 24 3.11 EDUCATION ............................................................................................................................................... 25 4. NEW GOVERNMENTAL INSTITUTIONS ............................................................................................................ 25 5. REGULATORY CHANGES ................................................................................................................................. 26 6. SENIOR OFFICIALS CHANGES/APPOINTMENTS ................................................................................................ 30 2 Monthly Report on Uzbekistan July 2020 1. SPECIAL NEWS COVID -19 UPDATE ➢ As of the morning of August 10th, the number of confirmed COVID-19 cases reached 30.820 with 196 confirmed deaths. ➢ The quarantine restrictions imposed on the country have been extended until August 15th, 2020. During this period: o State bodies and organizations must arrange remote working conditions, refrain from sending employees to business trips, provide financial assistance to employees in case of infection; o Citizens must refrain from hosting weddings, family celebrations and mass events; avoid public gatherings, maintain a social distance of at least 2 meters and wear face masks; o The following facilities must be closed: amusement parks, commodity markets, fitness clubs, catering facilities, educational institutions, camps, hotels, barbershops and beauty salons. ➢ The total amount of loans allocated to Uzbekistan by the Asian Development Bank (ADB), the International Monetary Fund (IMF) and the World Bank (WB) for the fight against coronavirus exceeded $1 billion ➢ By the decision of the republican commission, it was decided to support approximately 120,000 families in need during a 20-day quarantine period, which will be provided with food, medicine and basic necessities free of charge. 2. ECONOMIC OVERVIEW 2.1 LOCAL LEVEL Overview for January – June 2020 by sector: ➢ Enterprises of Uzbekistan produce industrial products worth 166.9 trillion soms ➢ Uzbekistan increases car production by 1.2 times ➢ Uzbekistan increases electricity production by 2.18% ➢ Uzbekistan produces 365,800 tons of gasoline ➢ Uzbekistan manufactures 344,000 tons of cotton fiber ➢ The volume of provided market services reaches 100.65 trillion soms ➢ Uzbekistan has attracted $ 4.8 billion in foreign investments 3 Monthly Report on Uzbekistan July 2020 “12-15% of the population in Uzbekistan are below poverty line” – Deputy Minister According to Akmalkhon Ortikov, First Deputy Minister of Economic Development and Poverty Reduction, preliminary estimates show that 12-15% of the population (4-5 million people) in Uzbekistan are below poverty line. “Complex and regional programs have been developed to help the most vulnerable, and the responsibilities of ministers, khokims and sector leaders have been defined. But the pandemic is doing great damage in many areas, including creation of jobs and fighting poverty. In order to mitigate its influence, a nationwide movement “Sakhovat va Kumak” was launched. In accordance with the decisions of local councils of people’s deputies, more than 127.7 billion soms were spent during the quarantine period on large families in need of social protection, elderly people living alone and people with disabilities, as well as about 321,000 temporarily unemployed families who lost their source of income. In May-June, working groups headed by heads of sectors in the regions took measures to create a source of income for about 233 thousand citizens. It was noted that in July-October this year, another 257,000 able-bodied people, who are in need of employment, will be provided with a source of income. Unemployment rate in Uzbekistan reaches 13.2% The unemployment rate among the economically active population of Uzbekistan in January-July 2020 amounted to 13.2%, the Ministry of Employment and Labor Relations said. Compared to the same period in 2019: ➢ The number of labor resources increased by 0.6%; ➢ the number of people employed in sectors of the economy decreased by 5%; ➢ in the official sector of the economy decreased by 0.2%; ➢ the number of citizens who left for work abroad amounted to 2,040 thousand people, which is 553.2 thousand less than the indicator for the same period last year; ➢ in the informal sector of the economy (excluding labor migrants working abroad) decreased by 2.1%; ➢ the number of the economically inactive population in the first half of the year increased by 4.5%. Economic growth of Uzbekistan slows down to 0.2% In January-June 2020, the gross domestic product of Uzbekistan at current prices amounted to 255.2 trillion soms, the State Statistics Committee reports. ➢ During the reporting period, GDP growth slowed to 0.2% against 6% in January-June 2019 and 5.9% in January-June 2018. ➢ Calculated in US dollars at the average exchange rate for the period under review, nominal GDP was formed in the amount of $ 26 billion (in January-June 2019 - $ 26.6 billion). ➢ GDP per capita of the country amounted to almost 7.5 million soums (766 dollars in equivalent). Compared to January-June 2019, the indicator decreased by 1.8% in real terms. The growth rates of GDP per capita in January-June 2018 and 2019 were 4.2% and 4.1%, respectively. 4 Monthly Report on Uzbekistan July 2020 Key directions identified to ensure economic stability On July 9th, 2020, issues regarding the insurance of the stability of the national economy were discussed on a meeting held by President Mirziyoyev. Over the past three months, 2.3 trillion soms ($225.9 million) of tax incentives were provided to economic sectors, 3.6 trillion soms ($353.5 million) were allocated from the Anti-Crisis Fund. In a course of the meeting, the following key areas were outlined by Mirziyoyev for ensuring further economic growth through the use of new approaches and tools during this year: ➢ ensuring economic and financial stability through optimization of budget revenues and expenses and provision of the additional income by resuming the activities of enterprises and improving tax administration; ➢ poverty reduction and employment growth; Ministries and agencies for villages with a high level of poverty were instructed to create a system of assistance for people in need and develop family business sector and a private household. It was proposed to direct students, who studied at the expense of a state grant, to such areas for the implementation of labor activities for a period of 3 years; ➢ acceleration of banking system reforms; ➢ foreign direct investment increase; ➢ increase of export potential and foreign exchange earnings security; ➢ strengthening industry competitiveness through Industrial Policy Strategy development, which touches upon the transfer of modern technologies, improving energy efficiency and industry competitiveness; ➢ development of small businesses
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