The Central Bank of Uzbekistan and the Bank of Korea have jointly launched a new research project under the Knowledge Partnership Program (KPP).
The parties signed a bilateral agreement to conduct research aimed at improving the effectiveness of the monetary policy transmission mechanism. The project primarily focuses on the role of floating interest rate instruments in strengthening the transmission of monetary policy decisions to the economy.
The first phase of the program included a research seminar attended by representatives from the Bank of Korea and professors from the Asian Research Center (ARC). Participants discussed the application of floating interest rate instruments in central bank operations, their impact on financial stability, and conducted an empirical analysis of the monetary policy transmission mechanism under external shocks.
Experts also studied the assessment of monetary policy transmission channels as the use of floating interest rate instruments expands and exchanged international experience in this area. During the second phase of the visit, representatives from the Central Bank of Uzbekistan, the Bank of Korea, and ARC professors identified the main directions for future work. Participants agreed on key research questions, the scope and composition of data for analysis, and discussed subsequent steps necessary for the successful implementation of the joint project.
According to the Fiscal Strategy for the upcoming three-year period, Uzbekistan has set its medium-term fiscal policy goals for 2027–2029.
The document provides for maintaining economic growth rates at around 7% annually, stabilizing the inflation rate within the target of 5% starting from 2027, and limiting the budget deficit to no more than 3% of GDP and public debt to no more than 40% of GDP.
According to national forecasts, GDP growth will reach 8.1% in 2026, 6.9% in 2027, 7.1% in 2028, and 7.4% in 2029. The main driving forces will be industry, which is expected to expand by 6.7–7.9%, and market services, showing an annual growth of 14.3–15%. Agriculture is expected to increase by approximately 5%.
This strategy aligns with the overall goal of expanding the economy to over 240 billion US dollars by 2030 under the Uzbekistan–2030 strategy. To achieve this goal, it is planned to create sustainable sources of growth, increase private investment and exports, raise the country's sovereign credit rating to investment grade, and include Uzbekistan in the group of upper-middle-income countries.
The document mentions the IMF forecast from April, according to which global economic growth will slow from 3.4% in 2025 to 3.1% in 2026, and global inflation will accelerate from 4.1% to 4.4%. Despite external uncertainty, strong domestic economic activity is considered the basis for maintaining high growth rates.
Key policy priorities include expanding the tax revenue base through improving tax administration, reducing the shadow economy, and abolishing inefficient tax benefits, alongside targeted budget expenditures and strict adherence to fiscal rules. Furthermore, salaries of civil servants, pensions, and social benefits will be indexed at a rate no lower than inflation.
The National Agency for Advanced Projects of Uzbekistan (NAPP) held a meeting with representatives of the International Monetary Fund (IMF) technical mission and the Central Bank. The goal of this meeting was to improve financial statistics and establish data exchange between various agencies.
During the negotiations, participants discussed the processes of forming and providing data on monetary and financial statistics (MFS), as well as financial stability indicators (FSI).
IMF representatives emphasized the critical importance of close interaction between the Central Bank, which regulates the banking sector, and the National Agency for Advanced Projects, which oversees capital markets and insurance. According to the participants, effective information exchange between state structures will increase the reliability of financial reporting, eliminate data duplication, and ensure consistency of statistical information.
The Uzbek side reported that the implementation of Presidential Decree No. PP-8 of January 9, 2014, provides for the introduction of a Unified Reporting System, automatic report generation through the integration of government bodies' information systems, and the development of digital data exchange. Furthermore, starting from January 1, 2028, submitting reports through this Unified System will become mandatory.
At the conclusion of the meeting, participants noted that adopting these measures will contribute to improving the quality of statistical information and further refining the formation of financial indicators in accordance with international standards. The parties also confirmed their readiness to continue cooperation and exchange experience in the field of financial statistics and strengthening financial stability.
