Tashkent, Uzbekistan (UzDaily.com) -- A favorable political and legal environment is considered an factor in the business and investment climate that supports macroeconomic stability and economic growth in our country. In this regard, the implementation of consistent and gradual reforms in various sectors of the economy and the investment guarantees provided by the law were recognized as the basis for the economic achievements that are currently being observed in Uzbekistan. Currently, the government provides many opportunities to support entrepreneurs, as an enabling business environment is critical to ensuring positive business activity.

To assess the economic situation in the country, 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 1 January to 31 October. grew by 26.9% over the same period of last year. At the same time, a significant increase in tax revenues was noted in Navoi (by 39.3%), Khorezm (by 38.6%), Kashkadarya (by 37.1%), Samarkand (by 34.1%), Tashkent (by 34, 0%) regions and in Tashkent city (by 32.9%).

The increase in tax revenue is associated with an improved business environment. The government is developing a number of programs in an effort to design a fairer tax system, ease the tax burden on businesses, simplify tax procedures, stimulate savings and investment, and promote economic development in the country. Over the past five years, 114 licenses and permits have been canceled, a notification procedure has been introduced for 33 types of activities. The procedures for obtaining permits have been simplified and, on average, the terms of their issuance have been reduced by 2 times.

Receipts from customs payments for the analyzed period increased by 42.6%. The largest increase in the volume of receipts was noted in Jizzakh (4.2 times), Syrdarya (2.4 times), Khorezm (2.0 times), Fergana (70.0%), Samarkand (68.8%) regions, in the city of Tashkent (by 37.6%) and in the Republic of Karakalpakstan (by 34.3%).

An effective system of customs payments is one of the main factors in the worthy economic development of the countries of the world, and at the present stage of development of market relations, the volume of receipts from customs payments indicates the degree of state participation in foreign trade integration. First of all, the increased volume of imports is indicative of growing domestic demand. Given the current investment environment, the main imported goods are machinery and transport equipment, industrial goods to expand the activities of new and existing companies. In addition, the abolition of the exemption from customs duties for participants in the free economic zone from 1 October 2020 in accordance with the Decree No. PF-4853 of 10/2016 led to an increase in customs duties.

According to the State Customs Committee, the volume of exports of goods since the beginning of the year has increased by 37.2% compared to the same period of last year. The growth in the volume of export of goods was provided in Andijan (by 55.8%), Samarkand (by 61.0%), Syrdarya (by 46.5%), Jizzakh (by 50.1%), Tashkent (32.1%) regions , in Tashkent city (by 52.9%) and in the Republic of Karakalpakstan (by 17.6%).

The increase in the rate of Uzbekistan’s exports can be attributed to an increase in the production of export-oriented products and an increase in external demand for traditional Uzbek articles.

Recently, the country has initiated new ways to stimulate business activities aimed at exporting industrial products, food products, chemicals and agri-food products.

The volume of loans issued by commercial banks for the analyzed period increased by 28.2%. The largest growth in the volume of loans issued is observed in Tashkent (by 46.2%), Bukhara (by 35.0%), Navoi (by 29.2%), Namangan (by 27.5%), Surkhandarya (by 68.5%) regions and in the Republic of Karakalpakstan (by 10.9%).

The increase in the volume of loans issued by commercial banks indicates a gradual improvement in the investment environment and the activities of business structures.

During this period, 84,812 new business entities were created, the largest number of which were registered in Kashkadarya (8,386), Samarkand (9,290), Ferghana (7,715), Tashkent (6,868) regions and in Tashkent (14,137).

The volume of transactions on the Uzbek Republican Commodity and Raw Materials Exchange for the analyzed period increased by 61.8%. A significant increase in stock exchange activity is observed in Bukhara (by 96.9%), Tashkent (by 79.1%), Namangan (by 64.1%) regions and in Tashkent city (by 2.3 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.

Currently, access to local government support tools and easy dialogue between business and government have been significant factors influencing business development in Uzbekistan. In recent years, the introduction of some of the tools that were used as the main factors of economic activity in our country has significantly expanded, and appropriate strategies and work are continuing in this direction. The main macroeconomic indicators show a significant positive recovery from the significant economic downturn caused by the global pandemic. In short, 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 the CEID. The study reflects business sentiment across the country.