FINANCIAL SECTOR DEVELOPMENT AND ITS ROLE IN PROMOTING ECONOMIC GROWTH IN UZBEKISTAN

Abstract

This paper explores the development of Uzbekistan's financial sector and its crucial role in promoting economic growth. As Uzbekistan transitions towards a market-oriented economy, a robust financial sector is essential for enhancing access to finance, facilitating investments, and supporting the overall economic landscape. This study employs a mixed-methods approach, combining quantitative analysis of financial indicators with qualitative insights from industry experts and policymakers. The findings indicate that improvements in the financial sector, including increased banking efficiency, the expansion of financial services, and the development of capital markets, have positively influenced economic growth. However, challenges such as limited access to finance for small and medium-sized enterprises (SMEs), regulatory barriers, and the need for greater financial literacy persist. The paper concludes with recommendations for policymakers to enhance the effectiveness of financial sector reforms in driving sustainable economic growth.