Tashkent, Uzbekistan (UzDaily.com) -- Starting from 2023, information on business climate indicators in Uzbekistan will be periodically published on the Trading Economics information portal.

The leading international economic statistical online portal Trading Economics, which evaluates over 20 million economic indicators in 196 countries of the world, for the first time published the Uzbekistan Business Climate Index, calculated by the Center for Economic Research and Reforms (CERR).

According to the results of the January survey, the consolidated indicator of the business climate since the beginning of the year has shown some decline. In particular, in January the dynamics of indicators in the sector of agriculture and services had a significant impact on the decline.

Analysts estimate the state of the business climate in the country in January as positive. So, despite the decrease in the composite indicator by 3 points, it amounted to 54 points.

CERR conducts a monthly survey among 1,000 entrepreneurs from various sectors of the economy. The consolidated business climate index is formed on the basis of indicators of the current state and expectations. Those, in turn, demonstrate a level of anxiety regarding obstacles to entering a business. The sampling methodology of the study is an industry stratified random sample, according to the World Bank Enterprise Survey methodology. In turn, the business climate index of Uzbekistan was developed with the assistance of the Ifo Institute for Economic Research and the consulting company Berlin Economics based on the methodology of the German Business Climate Index (Geschäftsklimaindex).

41% of respondents rated the current state of their business as “good”, the share of those who noted it as “bad” was 14%.

20% of enterprises increased the number of employees, and 41% of entrepreneurs noted an increase in demand for goods/services.

In January of this year, the indicator of the current state of the business climate decreased by 13 points and amounted to 34 points, which is explained by the deterioration in the state of agriculture, industry and services. However, there was a jump in the construction industry.

The indicator of expectations of business development prospects in the next 3 months remains at a fairly high level - 76 points, which is supported by optimism in all industries.

Analysis of indicator changes

In January this year, 50% of entrepreneurs noted that they faced various barriers. Thus, as the most pressing problems, respondents point to difficulties in access to finance and land, interruptions in the electricity and gas supply systems, as well as in tax administration and high tax rates.

Problems with gas supply and electricity supply have become more frequent in the industrial sector. At the same time, the share of entrepreneurs reporting problems with access to land plots has decreased.

At the same time, agriculture is distinguished by the highest optimism among other sectors - 84% of respondents expect improvement in the next 3 months.

In the construction sector, entrepreneurs have become less likely to report problems with high tax rates. At the same time, the sector’s need for financing remains the highest among other industries.

In the service sector, problems with tax administration, electricity and gas supply have become more frequent due to worsening weather conditions.