Tashkent, Uzbekistan (UzDaily.com) –– From 1 to 8 May 2020, the Center for Economic Research and Reforms (CERR) under the Presidential Administration of the Republic of Uzbekistan conducted a survey among entrepreneurs to assess the business climate in Uzbekistan. The survey involved 451 enterprises. This was reported by the public relations service of the Center for Economic Research and Reform.

As previously reported, the survey is conducted to study the state of the business climate in the Republic of Uzbekistan. The assessment was based on the German Business Climate Index methodology developed by the IFO Institute in Munich.

The business climate assessment includes three key indicators:

- Assessment of the current state of the business. It is calculated as the difference between the answers “Good” and “Bad” as a percentage of the total sample. The value of the current state varies from -100 points (all respondents rate the current state as bad) to 100 points (all respondents rate the current state as good);

- Expectations of business development prospects for the next 2-3 months. It is calculated as the difference between the answers “Improve” and “Deteriorate” as a percentage of the total sample. The expectation value varies from -100 points (all respondents expect further deterioration in their business) to 100 points (all respondents expect further improvement in their business);

- The value of the business climate is calculated based on the average balance sheet values ​​of the current state and business expectations. The value of the business climate can fluctuate between -100 points (all respondents assess the current state as poor and expect further deterioration of their business) and 100 points (all respondents assess the current state as good and expect further improvement in their business).

The relationship between the balance sheet values of the current state and expectations determine the prospects for economic development in the country for the next 2-3 months.

Based on the results of the assessment of the business climate in Uzbekistan, the following were revealed:

The indicator of the current state of the business was 26 points. This means that the business mood of entrepreneurs regarding the current state of their business is moderately positive.

The analysis showed that out of 451 enterprises, 34% answered “Good”, 46% - “Satisfactory” and only 19% - “Bad”.

The indicator of expectation of business development prospects for the next 2-3 months amounted to 43 points, that is, the expectation of entrepreneurs regarding the prospects for the development of their business for the next 2-3 months is positive.

The results of the survey showed that out of 451 enterprises, 52% answered “Will improve”, 33% - “Will not change”, only 14% - “Deteriorate”.

The business climate indicator was 35 points, i.e. The state of the business climate in Uzbekistan is assessed as “Good”. From the point of view of economic development, the relationship between the values of the current situation and expectations means that the country’s economy, in the next 2-3 months, will experience accelerated development.

The assessment of similar indicators of the business climate in Russia (-7), Kazakhstan (2) showed a sharp drop compared to the previous month.

CERR previously published the Business Activity Index (IDA) for April, in which there were negative changes, compared not only with the previous month, but also with the same month last year. The main reason for the decline in IDA is the introduction of quarantine in all regions of the republic at the end of March 2020.

It should be noted that, in contrast to the IDA, which is calculated on the basis of statistical data and shows administrative and quantitative indicators that measure business activity of a business, the Uzbekistan Business Climate Index was calculated by a survey in two areas: a qualitative assessment of the current state of business and the expectations of entrepreneurs regarding prospects for the development of their business for the next 2-3 months.