AUGMENTATION OF SERVICE SPHERE AND DIVERSIFICATION OF CATERING INDUSTRY

The maturing of the manufacturing sector in developing Uzbekistan combined with the relative backwardness of the service sector has made service sphere development a top priority. Our central objective is to broadly survey and analyze the current state of the sector to assess its potential as an engine for inclusive economic growth. Our scrutiny indicates that services are already an important source of output, growth, and jobs in the country; however, their productivity greatly lags behind that of the advanced economies, which implies ample room for further growth. The impact of the service sector on poverty reduction is less clear, but there is limited evidence of a positive effect. One key challenge for all of Central Asia is to improve the quality of service sector data. Developing the sector will be a long and challenging process, creating more competitive service markets by removing a wide range of internal and external policy distortions is vigorous for improving its productivity. As vital as policy reforms are, complementary investments in physical infrastructure and human capital will also be necessary to achieve a strong service sector.