Tashkent, Uzbekistan (UzDaily.com) - Compared to last month, the consolidated indicator of the business climate slightly decreased, which is largely due to the unfavorable epidemiological situation and extended quarantine restrictions.

Center for Economic Research and Reforms (CERR) in July this year interviewed over 1000 enterprises throughout the republic in order to find out how they assess the prospects for their business development.

The monthly survey is conducted in two areas: a qualitative assessment of the current state of the business and the expectations of entrepreneurs regarding the prospects for the development of their business for the next three months.

In July, the consolidated indicator of the business climate decreased by 3 points compared to the previous month and amounted to 55 points (on a scale from -100 to +100), which assesses the state of the business climate as positive.

In the sectoral context, the indicator of the business climate in agriculture increased by 3 points and amounted to 65 points, services showed a decrease by 6 points, dropping to 53 points, in construction there was an increase by 6 points (69 points in July) and in industry it was recorded a moderate decrease of 7 points (44 points in July).

The drop in business climate indicators is explained by the unfavorable epidemiological situation in the republic. In particular, 17% of small and medium-sized businesses noted the negative impact of the pandemic on the demand for goods / services.

The decline in the composite indicator of the business climate is associated with changes in the following components of the indicator:

In particular, the indicator of the current state of business amounted to 38 points (a decrease of 7 points), which characterizes the positive sentiments of entrepreneurs regarding the current state of business.

The share of respondents who noted the current state of their business as good was 41%. When asked how the state of business has changed over the past 3 months, 39% of entrepreneurs noted an improvement.

The demand for goods / services improved in 47% of enterprises, while the number of employees increased in 25% of enterprises.

The decline in the indicator of the current state of business is associated with changes in sentiment among entrepreneurs in the field of industry, agriculture and services, which is largely due to the extended quarantine restrictions.

At the same time, in the construction sector, there is a significant improvement in the current state of the business.

Another indicator under consideration, the indicator of expectations of business development prospects, having decreased by one point, amounted to 72 points, which in turn reflects the expectations of entrepreneurs about the prospects for the development of their business for the next 3 months as optimistic.

76% of entrepreneurs believe their business prospects will improve. 67% of enterprises expect an improvement in demand for goods and services. The number of employees may increase in the next three months, said 62% of respondents.

The industry expectations indicator showed the following changes: agriculture - 83 points (9 points growth), industry - 73 points (11 points growth), construction - 73 points (9 points decrease), services - 64 points (12 points decrease).

In general, the relationship between the values of the current situation and expectations means that, according to entrepreneurs, a positive trend in economic development will continue in the next 3 months.

The results of the survey indicate a moderate nature of economic recovery, despite unfavorable events, unfavorable epidemiological conditions and quarantine restrictions, which is due to the effectiveness of the ongoing reforms that ensure a favorable business climate and economic stability.