Uzbekistan outpaces Kazakhstan in economic growth according to Bank of America forecast

Bank of America forecasts Uzbekistan's economy to grow by 6.5 percent in 2025. This is higher than Kazakhstan's expected GDP growth of 5.5 percent. The difference in rates is explained by active structural reforms, investment growth and support from international financial institutions.

The analysts estimate that Uzbekistan's economy will grow by 6 percent in 2024 and accelerate in 2025. Additional support is provided by domestic demand, development of the service sector and growth in remittances from abroad.

Inflation in Uzbekistan is expected to reach 8.6 percent in 2025. This is higher than the central bank's target, but remains within the acceptable range. Monetary policy, according to the forecast, will remain restrained to limit inflation risks.

Bank of America also notes the stability of the banking system, growth of credit in the private sector and improvement in the foreign trade balance. The positive dynamics are supported by foreign direct investment inflows and export growth.

Amid common external risks, such as commodity price volatility and global economic instability, Uzbekistan is growing faster than Kazakhstan.

Bank of America also notes the resilience of the banking system, private sector credit growth and an improved external trade balance.