The results of the country's socio-economic development in first half of this year were summed up during the Government meeting on 18 July 2007. Prime Minister of Uzbekistan Shavkat Mirziyoyev presided at the meeting.

The measures implemented to meet the priority objectives of the socio-economic policy for 2007 outlined by President Karimov during the Government meeting on 12 February 2007 secured stably high rates of economic growth, dynamic development of various sectors of the economy and different territories of the country.

Thus, it was noted, the GDP growth rate for the reporting period made up 9.7%, including the growth of industrial production of 11.6%, consumer goods production – 19%, contract construction works – 20.5%, retail trade – 16.8%, paid services – 25.1%, and agriculture – 5.5%. The exports volume grew by 39%, of which 70% was the export of non-primary goods. The balance of trade was positive, with trade surplus of USnewscat="%" number="50".7 billion. In the reporting period, Uzbekistan had a budget surplus of 1.9% of the GDP. Inflation rate did not exceed the forecasts and made up 2.7%.

The appropriation of investments saw high growth rates – 140.2% of the figure for the first half of the previous year. The inflow of foreign investments increased 1.9 times, of which about 85% were direct investments. Launched were 154 new large and small production enterprises, including 30 objects in the light and textile industry. Also, 102 kilometers of transmission facilities were installed, and the construction of the railroad connecting Tashguzar, Boysun and Kumkurgan is nearly completed. The opening of communication on the route is planned for September this year.

Large-scale modernization of the economy, technical and technological renewal of its important industries was carried on. Nearly a half of the total volume of capital investments was made to support in the abovementioned aims, including the projects run at the enterprises' own expense – 65%. The programmes of modernization, technical and technological re-equipment of cotton processing, fat-and-oil industries, construction materials production and ferrous metallurgy are in the process of implementation.

As a result of strict compliance with the earlier made decisions on legal protection and support of enterprise, reduction of the tax burden on small businesses and liberalization of the conditions for their operation, the contribution of the small businesses to GDP grew to 38.1%.

In the agricultural sector, the process of reofganization of shirkats (collective farms) into farms is nearly completed. In the reporting period, the production of grain and cereal crops, potatoes, other vegetables, melons and gourds, meat and pods grew.

Measures were taken to raise the level of population's employment and income. As a result, some 314,800 new jobs were created, including over 75,000 – in the services sector, and 40,200 – in the sector of home-based labour. The population's real income grew by 21.3%.

Within the frame of the "Year of Social Protection" State Programme, allowances were issued to 440,000 unemployed mothers caring for children under the age of two, as well as 880,000 needy families with several children under the age of 18. Financial assistance was provided to 44,000 needy families, and 28,500 low-income families and families with several children were granted cattle. Also, 2,049 jobs were created for people with disabilities. Young families were issued loans for some 20.4 billion soums, including preferential micro-credits for business start-up purposes for over 10.6 billion soums.

The reports of the Minister of Economy Botir Hojaev, Acting Minister of Labour and Social Protection of the Population Aktam Haitov, Deputy Minister of Foreign Economic Relations, Investment and Trade Akmal Kamalov, khokims of Andijan and Kashkadarya regions, as well as heads of a number of large shareholding companies and banks of Uzbekistan contained a critical analysis of the efficiency of measures being taken to achieve the macroeconomic targets set for the period and complex programmes on development of industries and sectors of the economy. Attention was paid to the lack of measures on the development of the services sphere, creation of the necessary conditions for the intensification of development of agricultural firms to specialize in the processing of fruit and vegetable products, as well as the attraction of investors to the projects on creation of additional capacities in production of cement and other construction materials. Critical analysis was conducted on the issue of timely appropriation of funds from the Fund to Assist Employment for the financing of objects in the services sphere.

Meeting participants agreed that the shortcomings should be eliminated in the shortest period possible to ensure complete execution of the priority tasks and complex development programmes in accordance with the policy defined for 2007.

The Government meeting also addressed the progress on the Investment Programme of the Republic of Uzbekistan and completion of tasks on construction and reconstruction of motor roads planned for 2007 within the frame of the Motor Road Development Concept. Among those who spoke on this issue were First Deputy Minister of Economy G. Saidov, the Chairman of the Uzbekneftegaz (Uzbek Oil and Gas) National Holding Company N. Ahmedov, Minister of Public Education T. JUraev, khokim (mayor) of Surkhandarya region A. Eshmuradov, the Chairman of the Board of Uzbekyengilsanoat (Uzbekistan Light Industry) State Company R. Rizikulov, the Chairman of the UzAvtoYol (Uzbekistan Motor Roads) State Company M. Abdullaev, and the Director of the Republican Road Fund N. Julibekov. Their reports contained critical analysis of the interim results of the investment projects, construction and reconstruction of motor roads, and specific tasks for timely and unconditional commissioning of objects.

Another issue discussed at the meeting concerned the intensification and expansion of the scale of reforms in the banking and finance system, provision for availability of cash for withdrawals from deposits, and reduction of the off-bank circulation of cash. Reports were delivered by the Chairman of the Central Bank F. Mullajanov, the Chairmen of the National Bank of Uzbekistan for Foreign Economic Activity S. Rahimov, of the Asaka Bank K. Aripov, of the Ipoteka Bank A. Abdullaev, and the khokim of Ferghana region A. Abdullaev.

The attention of the heads of commercial banks was turned to the need to activate the efforts of the banks to raise the institutions' capitalization, expand their participation in the investment processes and financing of projects on modernization, technical and technological re-equipment of the key sectors of the economy as stressed by the President in the Resolution "On the measure to further raise the capitalization of banks and activate their participation in investment process on modernization of the economy".

A common line stressed in the speeches of the Prime Minister Kasymov, heads of the Ministry of Healthcare F. Nazirov, Ministry of Labour and Social Protection of the Population B. Alimuhamedov, khokims (mayors) of the regions is the need to take additional measures to fully and efficiently perform the "Year of Social Protection" State Programme.

Minister of Agriculture and Water Management S. Ismailov and regional khokims reported on the performance of the complex of measures to raise the output of cotton. They also outlined the immediate plan of actions, specifically stressing the need to speed up the development and submission of the programmes on improvement of the land-reclamation in 2008-2012, as well as efficient use of water resources in all regions and sectors of economy.

Meeting participants then agreed on further actions within the frame of the priority economic reforms outlined by the President during the meeting on 12 February 2007.

Uzreport.com