TASHKENT, May 13 (Xinhua) -- A modest GDP growth of 1.5 percent is expected in Uzbekistan in 2020, despite the global economic downturn caused by the outbreak of the COVID-19 pandemic, the European Bank for Reconstruction and Development (EBRD) said Wednesday.
Uzbekistan's economic growth is expected to expand at 6.5 percent in 2021 against the backdrop of export recovery and growth in domestic demand, the EBRD said in a statement.
According to the EBRD's Regional Economic Outlook report, the economy will slow down due to the reduction in exports impacted by the measures to curb the spread of the coronavirus.
A rapid expansion of private sector lending has been observed before the crisis, which could become a source of vulnerability amid social distancing measures over a long period. This will eventually affect the stability of the banking system, the report added.
EBRD experts expect that remittances from Russia, which take up about 8 percent of Uzbekistan's GDP, will continue to decline. And tourism and hospitality will be hit hard by coronavirus disruptions.
Earlier Uzbekistan's Central Bank made a similar forecast in line with EBRD expectations. Enditem
