The session of the Cabinet of Ministers of the Republic of Uzbekistan took place on July 17 this year in Tashkent, which has summed up the outcomes of social and economic development of the country during the first half of this year and elaborated the additional measures on overcoming the consequences of the global economic crisis, ensuring implementation of the most important priorities of sustainable development of economy in 2009 defined by the President of the Republic of Uzbekistan Islam Karimov at the session of the Government on February 13 this year.

The participants of the session comprehensively considered and deeply analyzed the processes of structural transformations, reforming the economy and course of implementation of the Anti-crisis program. Those who took a floor have noted that despite the global financial and economic crisis, the implementation of policy based on realizing the five fundamental principles of reforming elaborated by the President of the Republic of Uzbekistan Islam Karimov, as well as adoption of the timely anti-crisis measures had not only prevented the growth of inflation level, decline in production, negative balance of balance of trade, decrease in investment activity, increase in unemployment, sharp decline of living standards and real incomes of population now being observed in most of the countries of the world, but also ensured the stable, balanced and sustainable development of economy. The growth of GDP in the first half of 2009 made up 8,2 percent, volumes of industrial production – 9,1 percent, production of consumer goods – 13,1 percent, agriculture – 4,6 percent, services – 18,5 percent, construction works – 32,5 percent. The State Budget has been implemented with surplus in the amount of 0,3 percent towards GDP, the level of inflation did not exceed the forecast parameters. The growth in real incomes of population has accounted for 25,9 percent.

The delegates to the session underscored that given the current global economic crisis, when the demand and prices for many types of export products have fallen sharply due to the reasons not depending on the country, as the key factor in maintaining the sustainability of economy stood development of domestic demand for products of domestic producers, firstly, by way of implementing the development programs of industrial and social infrastructure, housing construction, sphere of services, as well as expanding manufacture of localized products and cooperative deliveries between the domestic enterprises.

In accordance with the Resolution of the President of the Republic of Uzbekistan to accelerate development of industrial and social infrastructure during the period of January through June this year, the country channeled UZS 141 billion for the construction, reconstruction and road repair works of general-use motorways of international and state significance. The countryside areas saw commissioning of 435 kilometers of gas and 839 kilometers of water supply systems, construction of 2,9 million square meters of individual housing. The work worth UZS 61,1 billion has been accomplished at land-reclamation and irrigational sites. 233 general education schools have been commissioned. It is about to complete the construction of 196 professional colleges and 18 academic lyceums, which are to be commissioned by new academic year. The improvement and betterment works are underway everywhere at residential areas and along main motorways.

Along with expanding the domestic demand the consistent measures to support exporters are going in parallel. With a view of replenishing the circulation funds of exporter companies the commercial banks allocated soft loans worth UZS 81 billion, the value added tax refund for exporter companies has made up UZS 21 billion. The aforementioned measures, as well as further diversification of export and access to the new external product markets allowed securing the growth in export program by 13,4 percent and positive surplus of trade balance of about USD 1,6 billion.

As a part of the “Year of development and improvement of countryside” State program Uzbekistan has been undertaking a broad spectrum of measures on betterment of agricultural residential areas, as well as promotion of efficiency of agrarian sector of economy, firstly, thanks to accelerated establishment of modern enterprises on deep processing of agricultural products, ensuring high employment rates at the countryside, first, among youth, increasing incomes and living standards of the countryside population. Despite tough weather conditions, the nation’s farmers harvested over 6,6 million tons of grain. The production of fruit and vegetable products has been increased by 12,4 percent, cattle and poultry – by 6,6 percent, and eggs –by 15,3 percent. All this creates conditions for a reliable meeting of population’s needs in foodstuff.

During the session its participants have paid a special attention to the analysis of implementation of the Investment program of the Republic of Uzbekistan, adopted programs of modernization, technical and technological re-equipment of the most important branches of economy and localization of production. They have noted that measures being undertaken on enhancing the investment activity of banking system, speedily implementing the most important investment projects and creating the favorable investment climate provided for the growth of volumes of assimilated capital inputs by 32,7 percent, including the direct foreign investments – to 2,6 times. The country channeled 71,1 percent out of total volume of investments to the production investments.

During the first half of this year Uzbekistan implemented 667 production and infrastructural investment projects in priority branches of economy aimed at new construction, modernization, technical and technological renewal of production that ensure manufacturing of new export-bound products. For over the first half of 2009 the country commissioned 193 new production sites, of them in the light and textile branch – 32 sites, food industry – 67, and construction materials industry – 78.

The implementation of the localization program allowed assimilating 95 new types of products being localized and increasing volumes of production of the finished products being localized to 1,8 times, having ensured manufacture and realization of import-replacing goods worth in equivalent USD 708 million.

The task of ensuring the high employment rates of population remains to stand among the most important and main priorities. For over the first half of 2009 534,6 thousand new jobs have been created, including 328 thousand – at the countryside areas and 52 thousand – in the sphere of home-stay labor in cooperation with enterprises.

On the outcomes of discussions of the issues put on the agenda of the Government’s session the relevant decisions have been adopted, which foresaw additional measures on unconditional ensuring implementation of the most important priorities of the nation’s social and economic development program for 2009.