The World Bank will give Uzbekistan a $239 million loan to develop its water supply system and a $50 million loan to modernise its innovation system.

The Central Asian country's gross domestic product (GDP) grew by 3 percent year-on-year in the first quarter of 2021. Per capita GDP grew by 1 percent year-on-year to $353.4 in January-March.

The agency said that the rating was support-driven, but was one notch below Uzbekistan’s ‘BB-’ long-term local-currency Issuer Default Rating (IDR).

Uzbekistan plans to reform the country’s service sector by investing $300 million and allowing private businesses to lend offices to public organisations and provide 24-hour services.

The Central Asian country is making efforts to improve its investment climate after more than two decades of economic isolation. The closed, autarkic system viewed most foreign investments as a threat. That ended when Islam Karimov, who had led Uzbekistan since before the Soviet breakup, died in 2016.