Tashkent, Uzbekistan (UzDaily.com) - The spread of the new coronavirus infection last year negatively affected the economies of the countries of the world, and this did not bypass the economy of Uzbekistan. After the pandemic, the economy of Uzbekistan enters a stable trend of economic growth, and also improves its structural position. Access to local government support instruments and dialogue between business and government have become significant factors influencing business development in Uzbekistan. Despite the fact that quarantine restrictions are still in force, there was a high business activity in the current period compared to the same period of last year.

To assess the economic situation in the country in the crisis conditions caused by the spread of the coronavirus pandemic around the world, specialists from the Center for Economic Research and Reforms (CERR) conduct monthly monitoring of the state of business activity at the regional and district levels.

The analysis of business activity in the context of the regions of the Republic of Uzbekistan is monthly calculated by CERR on the basis of operational data (monitoring in all regions of the republic, according to the data of the State Customs Committee, State Oil Company, Central Bank and UzEX).

The monitoring results showed that the volume of tax revenues of the republic in the period from January 1 to July 31 of this year grew by 31.9% over the same period last year. At the same time, a significant increase in tax revenues was noted in Kashkadarya (by 42.8%), Navoi (by 39.8%), Khorezm (by 39.1%), Samarkand (by 33.9%), Tashkent (by 33, 8%) regions and Tashkent city (by 39.6%).

The increase in tax revenues was due to the easier interaction with administrative authorities, the transition to electronic document flow and fewer checks - all this created a better business environment. In other words, transparency initiatives make it easier to deal with tax authorities. All of this points to an improved state of business activity and sustainable economic growth.

Receipts from customs payments for the analyzed period increased by 49.4%. The largest increase in the volume of receipts was noted in Jizzakh (5.5 times), Syrdarya (2.8 times), Khorezm (2.1 times), Fergana (89.6%), Samarkand (85.0%) regions, in the city of Tashkent (by 38.2%) and in the Republic of Karakalpakstan (by 37.9%).

The volume of receipts from customs payments indicates the degree of participation of the state in foreign trade integration. The increased volume of imports is indicative of growing domestic demand and an increase in government revenues. The main imports are machinery and transport equipment, manufactured goods, chemical and food products, and animals. The predominance of equipment in the overall structure of imports is a consequence of investment in the economy of Uzbekistan.

According to the State Customs Committee, the volume of exports of goods since the beginning of the year has increased by 39.3% compared to the same period last year. The growth in the volume of export of goods was ensured in Andijan (by 72.8%), Syrdarya (by 70.9%), Bukhara (by 70.8%), Jizzakh (by 67.8%), Tashkent (61.2%) regions, in the city of Tashkent (by 43.0%) and in the Republic of Karakalpakstan (by 30.4%).

An increase in domestic demand and the introduction of new efficient and business-oriented export promotion methods have boosted export volumes. Recently, the country has initiated new ways to stimulate business activities aimed at exporting industrial and agri-food products. At the same time, integration into world trade has improved recently, contributing to an increase in exports. The analysis showed that exports of manufactured goods, food products and chemicals are growing at a fast pace.

The volume of loans issued by commercial banks for the analyzed period increased by 29.3%. The largest growth in the volume of loans issued is observed in Navoi (by 44.0%), Namangan (by 38.7%), Tashkent (35.2%), Bukhara (by 34.4%), Surkhandarya (by 34.3%) regions, in the city of Tashkent (by 41.2%) and in the Republic of Karakalpakstan (by 30.3%).

Along with the growing domestic demand, the volume of credit resources is growing to meet this demand. In addition, the simplification of the procedures for issuing concessional loans and subsidies played an important role in increasing the volume of allocated loans, which indicates an increase in the activity of legal entities, an increase in personal income, which gives an impetus to accelerate the economic process and improve the activities of business structures. In fact, most business survey respondents believe that there is no need to wait for better times - now is the right time to develop and expand a business in Uzbekistan.

During this period, 59,247 new business entities were created, the largest number of which were registered in Kashkadarya (6,848), Samarkand (6,116), Fergana (5,235), Tashkent (5,018) regions and in Tashkent city (10,221).

The volume of transactions on the Uzbek Republican Commodity and Raw Materials Exchange for the analyzed period increased by 54.7%. A significant increase in stock exchange activity is observed in Bukhara (by 86.1%), Tashkent (by 75.2%), Namangan (by 57.6%) regions and in Tashkent city (by 2.2 times).

The growth in the volume of transactions in these regions was ensured by increased sales of such goods as mineral fertilizers, cotton fiber, diesel, cement, gasoline, cathode copper, ferrous metals, technical cotton seeds and sugar. The increase in the volume of transactions on the stock exchange indicates an increase in the activity of legal entities and an increase in the income of individuals, which contributes to an increase in business activity through demand factors.

The economy of Uzbekistan is on track to ensure sustainable economic development in terms of macroeconomic indicators. This shows that Uzbekistan adopted relevant reforms during the pandemic, which contributed to the increase in the competitiveness of the national economy, which is reflected in the indicators of the business activity index. Positive trends were identified as a result of measures taken to develop business entities, support individuals and create favorable conditions for doing business. Thus, the indicators of economic activity, despite the unfavorable global convectors, indicate the stable nature of the economic recovery in the current year.

The gradual economic recovery in 2021 is also evidenced by the results of a survey of enterprises to assess the state of the business climate in Uzbekistan, which is carried out monthly by CERR. The study reflects business sentiment across the country.