THE EFFECT OF CENTRAL BANK POLICIES ON GDP GROWTH IN UZBEKISTAN

Abstract

This research examines the effect of the Central Bank of Uzbekistan's primary rate and the role of digitalization on the nation's Gross Domestic Product (GDP) growth. It builds on existing studies by integrating the emerging digital economy's interaction with central bank policies.

Utilizing a combination of qualitative and quantitative methods, this study evaluates economic indicators from 2016 to 2022. This includes the Central Bank's primary rate and GDP data, as well as metrics on the expansion of digital financial services and e-commerce. The research employs correlation analysis, enhanced by qualitative reviews of digitalization strategies and their execution in the finance sector.

The results show that while the Central Bank's primary rate has a minimal direct effect on GDP growth, the surge in digital financial services and e-commerce closely associates with economic growth. The adoption of digital technologies in the banking and commerce sectors has notably improved the effectiveness and accessibility of financial services, contributing to GDP enhancement.

The study highlights the necessity for the Central Bank to incorporate digital economy considerations into its policy framework. It argues that in addition to conventional monetary instruments, embracing digitalization can act as a key driver for economic growth. The paper advocates for the development of policies that bolster digital infrastructure and innovation, thus aligning central banking operations with modern digital advancements.