A new World Bank report notes that countries in Europe and Central Asia can significantly accelerate economic growth by improving business productivity and the quality of education. Against the backdrop of a slowdown in the region, Uzbekistan stands out with high indicators, attracting record investments and effectively using its demographic potential.
The World Bank has published a report on the economy of the Europe and Central Asia region titled “Jobs and Prosperity”. The document emphasizes that the region has demonstrated resilience to recent shocks, but decisive steps to stimulate the private sector and create quality jobs are needed for long-term success.
Regional Context and Central Asia’s Leadership
According to the forecast, economic growth in the developing economies of the region is expected to slow from 3.7% in 2024 to 2.4% in 2025. However, Central Asia remains a zone of accelerated development. Growth in this subregion is expected to strengthen to 5.9% in 2025.
Uzbekistan’s economy continues to demonstrate one of the highest growth rates in the region. According to World Bank estimates, following confident growth of 6.6% in 2024, the republic’s GDP will grow by 6.2% in 2025. This confirms the effectiveness of ongoing reforms and the country’s high investment attractiveness.
Investment Boom and Technological Development
Uzbekistan has achieved impressive results in attracting capital. Inflows of foreign direct investment into the country reached a record 11.9 billion US dollars in 2024. This positive trend continues in the current year, with external sources accounting for nearly two-thirds of all investments.
Significant funds are being directed to strategic sectors such as urban infrastructure, transport, and renewable energy. Special attention is paid to technological development: sustainable infrastructure using artificial intelligence is being created at the IT Park in Tashkent, and a similar project is planned in the Bukhara region. Total investment in this sector is projected at 5 billion dollars by 2030.
Demographic Dividend and Labor Market
The report notes Uzbekistan’s unique position against the backdrop of demographic trends in the region. While the workforce is shrinking in many countries, Uzbekistan expects significant growth. By 2050, the country’s working-age population will increase by almost 10 million people, representing a growth of 42%.
This creates a powerful stimulus for the economy but also requires the creation of a sufficient number of productive jobs. The World Bank emphasizes that the key factor here will be the development of the private sector and support for young, dynamic companies, which traditionally create more jobs than older enterprises.
Focus on Productivity and Education
The main message of the report is the importance of increasing productivity to accelerate economic growth. To achieve this, countries in the region are advised to improve the business environment, lower barriers to market entry, and modernize the education system.
The quality of the workforce plays a decisive role. The report states the need to improve the higher education system so that graduates possess skills in demand in the modern labor market. This will allow Uzbekistan and other countries in the region not only to maintain growth rates but also to increase the incomes of the population, bringing them closer to the level of high-income countries.
Source: World Bank Group