Uzbekistan’s Cabinet of Ministers assembled January 29 to review the socio-economic progress in the nation for the year 2009 and outline policy priorities for 2010.

President Islam Karimov attended the session. In his speech, the Head of state maintained that Uzbekistan has managed to not only weather the tough challenges of the global economic downturn, but secure a steady economic growth owing to the aptly articulated strategy of development and modernization. Efforts in implementing the Anti-Crisis Program 2009-2012 have proved critical in overcoming the troubles.

According to President Karimov, the macroeconomic stability and sound economic growth rates observed last year in Uzbekistan plainly point to the correctness of the economic path chosen by the nation. The route is renowned as the Uzbek model of economic reforms.

In 2009, the gross domestic product grew by 8.1 percent, while the volume of industrial production rose by 9 percent. The size of agricultural production has expanded by 5.7 percent. Equally remarkable are growth rates in retail trade turnover (16.6 percent) and services (12.9 percent).

Government budget was executed with a surplus, without cuts in spending, whereas inflation levels did not exceed the forecasts and constituted 7.4%, the President said.

Measures to consolidate the banking and financial sector have allowed to amplify the cumulative capital of the banks twofold in the past two years. Accordingly, proportion of bank credits used for investment has reached 70 percent.

The government enforced a complex of measures to secure the financial stability of enterprises in the production sector principally through modernization of manufacturing, reduction of net cost, enlargement of cooperative ties among local companies, stimulation of internal demand. The volume of localized production increased 2.3 times and more than 120 new types of products were introduced.

Furthermore, volume of exports grew by 2.4 percent year on year thanks to the generous support for export oriented firms faced with slowdown at world markets.

Uzbekistan has sought to structurally transform and diversify its economy, modernize and technologically renovate manufacturing, and attract investments including those from abroad. New production capacities were launched last year in car, food, chemical, textile, building materials, pharmaceutical and other industries. In addition, automobile and railway transport communications have undergone wide-ranging improvement.

Anti-crisis policy pursued in 2009 led to create more than 940,000 new jobs, including over 500,000 in rural areas.

In his speech, President Karimov also pointed out a few shortcomings to be addressed this year. The head of nation presented his vision with regard to central tasks in the country’s socioeconomic development in 2010.

Islam Karimov authorized the ministers, chiefs of economic agencies and local government bodies to take appropriate measures in preserving the pace of reforms in the economy, implementing strategic investment projects and bolstering the banking and financial system.

The President also underscored the magnitude of 2010 government program Year of Comprehensively Advanced Generation, and urged to speed up the construction of rural housing and infrastructure, augment employment and citizens’ real incomes.