The Government of Uzbekistan reported GDP growth at 7.8% in the first half of 2016, down from the 8.1% recorded in the same period of 2015, reflecting a weaker external environment and slower growth in industry.
On the supply side, growth was driven by expansion at 12.9% in services and 17.5% in construction, which benefited from continued implementation of state housing and infrastructure development programs. A 5-year service sector development program and buoyant activity in finance and telecoms supported the growth in services. Industry including construction expanded by a reported 6.7%, down from the 8.1% reported a year earlier.
While detailed output data are not available, weaker growth in energy and metals and decline in machinery likely explained the slowdown, despite substantial gains in food processing, construction materials, and chemicals.
Agriculture expanded by 6.8% versus 6.5% a year earlier, reflecting higher production of fruit and vegetables. In April 2016, the Russian Federation and Uzbekistan agreed to expand bilateral trade in agricultural produce, prompting the government to announce a major horticulture development program. Read more from Asian Development Outlook 2016 Update
Economic forecasts for Central Asian countries