Uzbekistan Records 7.7% Economic Growth in 2025 Following IMF Review
According to a new report from an International Monetary Fund (IMF) mission, Uzbekistan’s gross domestic product expanded by an impressive 7.7% in 2025. Over the same period, the nation’s unemployment rate decreased by 0.7% to settle at 4.8%.
The fund highlighted that this economic expansion was broad-based with the construction and service sectors experiencing the most rapid development. Even with strong domestic demand, consumer price inflation fell to 7.3% year-on-year by the close of 2025, marking a notable improvement from the 9.8% recorded the previous year.
Experts attribute this drop in inflation to a strict monetary policy, the fading effects of the May 2024 energy price hikes and a 6.9% appreciation of the som against the US dollar.
The IMF maintains an optimistic outlook for the Uzbek economy despite ongoing military conflicts in the Middle East. Projections indicate that the republic’s GDP will grow by 6.8% this year and by a further 6% in the following year.
Furthermore, the IMF welcomed the country’s successful reduction of its budget deficit last year. To maintain control over inflation, the organisation advises constraining future expenditure growth.
Specific recommendations include reforming the procurement system, reducing financial support for state-owned enterprises and optimising the public sector wage bill. The fund also suggests introducing limits on the primary deficit excluding commodity revenues starting next year.
Turning to the financial sector, the IMF insists that speeding up the privatisation of state-owned banks remains a top priority. The report notes that authorities must focus on attracting investors and enhancing corporate governance.
It concluded by stating that asset quality requires improvement, weak banks should be restructured where necessary and credit expansion must not come at the expense of wider financial stability.
