Tag Archives: economy

Uzbekistan again pledges economic reform

MAY 18 2012 (The Conway Bulletin) – For the second time this year the Uzbek government has pledged economic reforms to open up its command economy to private investors and, potentially, foreign investors.

On May 15, Uzbek media quoted Saifitdlin Gafarov, deputy chairman of the Uzbek state property committee, as saying that the government wanted to sell off 500 stated owned assets. Mr Gafarov was thin on details but he did say that the sell-off would cover all sectors from energy to pharmaceuticals. Intriguingly, AP reported that Mr Gafarov said Uzbekistan was specifically looking for foreign partners to develop its technology industry.

All this sounds good and Mr Gafarov’s announcement also comes a few weeks after a statement that Uzbekistan wants to make life easier for often-harassed foreign firms working in the country.

Despite the warm words, though, there has been no hard plan. It’s unclear exactly what the government means and whether they are serious about bringing in much-needed foreign investment and expertise or whether they just want to sell-off assets to members of the elite.

The Uzbek economy is closed off, inflation is rampant and shortages are increasing. Opening up the economy may help to ease problems but if the Uzbek government wants to be taken seriously it needs to unveil more plans.

ENDS

(News report from Issue No. 088, published on May 18 2012)

An output drops in Tajik aluminium smelter

MAY 11 2012 (The Conway Bulletin) – Tajikistan’s aluminium smelter, vital to its economy, produced 12% less metal in the first four months of the year compared to the same period in 2012, a source at the company told Reuters. The source blamed the shortfall on a gas dispute with Uzbekistan and modernisation work that slowed output.

ENDS

(News report from Issue No. 088, published on May 18 2012)

Eternal flame dies in Kyrgyzstan

APRIL 25 2012 (The Conway Bulletin) – A Kyrgyz utilities company briefly extinguished the Eternal Flame World War II monument in Bishkek when it cut off the gas because of an unpaid bill of around $10,000, AP news agency reported. The row shows the extent of the economic difficulties facing Kyrgyzstan.

ENDS

(News report from Issue No. 085, published on April 27 2012)

Tajik Bank cuts interest rate to 8%

APRIL 16 2012 (The Conway Bulletin) – The Tajik Central Bank cut interest rates to 8% from 9% to combat a slowdown in the economy, media reported. The cut brings Tajik interest rates to their lowest level since the end of the 2008/9 global financial crisis and reflects a general economic slowdown across the Central Asia and South Caucasus region.

ENDS

(News report from Issue No. 084, published on April 20 2012)

Georgia plans to sell national railway company

APRIL 16 2012 (The Conway Bulletin) – Georgia plans to sell up to 25% of its national railway company on the London Stock Exchange in May, Irakly Ezugbaia, the company’s CEO said. The sale will be made through Global Depositary Recipients (GDRs) and fits with Georgia’s plans to attract more foreign investment.

ENDS

(News report from Issue No. 084, published on April 20 2012)

Turkmen economy grows by 10.4%

APRIL 14 2012 (The Conway Bulletin) – The Turkmen economy grew 10.4% in the 12 months to end-March 2012, state media quoted Turkmen president Kurbanguly Berdymukhamedov as saying. This is a slowdown from the 14.4% growth during the same period in 2011 but still shows how quickly the country’s economy is expanding. Since coming to power in 2007, Mr Berdymukhamedov has boosted gas sales overseas.

ENDS

(News report from Issue No. 084, published on April 20 2012)

Uzbek economy gets worse

APRIL 13 2012 (The Conway Bulletin) – Despite rosy official figures, information leaking out of Uzbekistan suggests that the economy might not be in such rude health.

In the past month, the US-funded Radio Free Europe/Radio Liberty has reported that pensioners were having to repay part of their pensions and that teachers were being paid with chickens instead of cash.

Sources have also told the Conway Bulletin there are queues of hundreds of cars outside petrol stations throughout the country and regular power and water cuts, even in the capital Tashkent.

These snatched insights are important because Uzbekistan is one of the world’s most closed states and has been presenting itself as a successful alternative to the free-market global economy.

The official line is that its closed policies have made Uzbekistan self-sufficient and sheltered it from the global economic crisis of 2008/9. State statistics show GDP growth at around 8% in 2011 and 8.5% in 2010.

Now though, the Uzbek government appears to be trying to lure foreign investors. On April 11 the AP news agency reported that the Uzbek authorities had promised potential investors tax breaks. Importantly it also promised not to interfere in investors’ work.

Either the Uzbek government finally wants to open up the country or it needs some cash.

ENDS

(News report from Issue No. 083, published on April 13 2012)

Wage inflation soars in Kazakhstan

APRIL 10 2012 (The Conway Bulletin) – Average wages in Kazakhstan were roughly $623 in February, about 18% higher than a year ago, the national statistics office reported. The increase is far higher than inflation which officially measured 7.4% in 2011. Inflation has slowed in Kazakhstan in 2012, triggering a couple of interest rate cuts.

ENDS

(News report from Issue No. 083, published on April 13 2012)

Georgia records deflations

MARCH 2 2012 (The Conway Bulletin) – Georgia recorded deflation last month for the first time since Aug. 2009. Year-on- year, average prices fell 2.1% in February, mainly due to a 3.5% drop in the cost of food and non-alcoholic drinks. In May 2011, year-on- year inflation had hit 14.3%, highlighting the region’s economic volatility.

ENDS

(News report from Issue No. 080, published on March 8 2012)

Inflation slows in Tajikistan

FEB. 27 2012 (The Conway Bulletin) – With inflation easing, the Tajik Central Bank cut interest rates to 9% from 9.8%. Reuters reported that inflation in Tajikistan averaged 9.3% in 2011 compared to 9.8% in 2010. Analysts had identified rising inflation as a potentially destabilising factor in Tajikistan.

ENDS

(News report from Issue No. 079, published on March 1 2012)