BAKU, Azerbaijan, Feb. 26
By Klavdiya Romakayeva - Trend:
The volumes of foreign direct investments (FDI) in Uzbekistan in 2020 decreased by 32.7 percent, Trend reports with reference to the overview of economic development trends in Uzbekistan for 2020 and forecasts for 2021 presented by the Ministry of Economic Development and Poverty Reduction of Uzbekistan.
According to the overview the volume of investments in fixed assets in real terms at the end of last year decreased by 8.2 percent compared with the previous year and amounted to 202 trillion soums ($19 billion). Also, the volume of investments financed from centralized sources decreased by 34.9 percent - to 39.3 trillion soums ($3.7 billion).
At the same time, investments financed from budgetary funds decreased by 33.6 percent, funds of the Fund for Reconstruction and Development of Uzbekistan - by 75.7 percent, and foreign investments and loans guaranteed by the government - by 28 percent.
In addition, the volume of FDI decreased by 32.7 percent in 2020 and amounted to $2.9 billion (in US dollar terms, the decrease amounted to 33.8 percent). According to the Ministry of Economic Development, FDI increased by more than 1.6 times (from $2.4 billion to $3.5) due to non-guaranteed foreign loans.
The ministry notes that this is mainly associated with the development of investments in the framework of the implementation of large projects, including NMMC (Navoi Mining and Metallurgical Complex) - $636.5 million, Uzbekneftegaz - $154.8 million (expansion of the production capacity of the Shurtan Gas Chemical Complex - $122.7 million), Uzeltekhsanoat - $101.8 million (production of household refrigerators - $48 million), Ministry for the Development of Information Technologies and Communications of Uzbekistan - $89.4 million (development of a broadband telecommunications network - $35.5 million) and Uzbek Construction Materials - $91 million.
It is reported that FDI were directed to the implementation of projects in the field of natural gas production, which accounted for 22.1 percent of total FDI, the production of other non-metallic mineral products - 22.5 percent and construction - 9.3 percent.
The ministry believes that the continuation of the current trends in investment may threaten the achievement of economic growth rates in 2021 (it is projected at 5.1 percent), which will require the adoption of effective measures to improve the investment climate aimed at a significant increase in the volume of attracted investments in the economy and increasing their efficiency.
“In the field of improving the investment climate, the main step should be the formation of a full and effective institutional framework, by directing efforts to create conditions and attract only private and foreign direct investment,” the ministry noted.
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