During a meeting on January 16, President Shavkat Mirziyoyev outlined the key priorities for Uzbekistan’s economic development in 2024, as stated by his Press Secretary Sherzod Asadov.

The agenda for the year includes a targeted increase in the country’s GDP by at least 6% (international organizations anticipate growth within 5.5%), aiming to reach $100 billion.

Despite a 6% growth in the industry last year, the added value in production remained below 40%.

“We are not satisfied with these figures. This is mainly attributed to the import dependence, high energy consumption and excessive costs,” shared the head of the country.

Despite the reduced tax burden on major industrial sectors, many increase their costs instead of bringing income to the state. Specifically, costs at 10 large enterprises overpaced the revenue growth.

President Mirziyoyev has declared 2024 as a year focused on efficiency and cost reduction for managers in the economic sector and state-owned enterprises.

From now on, support mechanisms within the industry will prioritize products with high added value and market potential, the president emphasized.

Responsible managers are directed to endorse and implement measures to achieve a 45% increase in added value, a 15% reduction in production costs and a 7% industry growth for each enterprise in 2024.

Furthermore, goals include reducing production costs in major industries by 20 trillion soums and accounts receivable by eight trillion soums.

The Center for Economic Research and Reforms (CERR), the Institute for Macroeconomic and Regional Studies (IMRS) and the Agency for Strategic Reforms are tasked with analyzing a minimum of two industries per month, proposing strategies to reduce costs, increase added value and labor productivity and explore new opportunities.

In 2024, the primary objective for the management of the economic sector is to achieve a GDP increase of at least 6% through enhanced economic efficiency, as noted by President Mirziyoyev.

The president emphasized that the budget deficit should not exceed 4% as a result of strengthening financial discipline (which has not been observed in recent years).

During the same meeting, the president directed a 15% reduction in the number of deputies within the government’s economic bloc, currently at 40 deputy members. This decision stems from the perceived lack of “modern thinking and efficiency in decision-making.” Additionally, KPIs will be introduced for managers, influencing their salaries.