Uzbekistan's Business Climate Improved in June — CERC

Tashkent, Uzbekistan (UzDaily.uz) — The Center for Economic Research and Reforms (CERC) has presented the results of its June monitoring of the business climate in Uzbekistan. According to the monthly survey of entrepreneurs, business representatives viewed the current economic situation more positively while maintaining high expectations regarding company development over the next three months.

Following the results of June, the composite business climate index reached 58 points, an increase of one point compared to May. An index reading above 50 points indicates a prevalence of optimistic sentiment within the business environment.

The current business assessment index stood at 48 points, reflecting restrained evaluations by entrepreneurs, while the expectations index remained high at 68 points, demonstrating business confidence in future development.

The study revealed improvements in key business activity indicators. Nearly 48 percent of entrepreneurs rated the current state of their business as good, compared to 44 percent of respondents a month earlier.

Growth in demand for goods and services was reported by 40 percent of survey participants, up from 37 percent in May. Meanwhile, the proportion of enterprises that increased staff numbers stood at 24 percent, slightly below the May figure.

Positive Dynamics Across Most Sectors

The sectoral structure of the index points to sustained positive sentiment across virtually all sectors of the economy.

The highest business climate indicator was recorded in the construction sector at 65 points, despite a minor decrease from the previous month. Nearly half of construction companies reported an improved situation over the past three months, and the majority maintain positive expectations for further development.

In agriculture, the composite index stood at 64 points. More than half of agricultural producers noted an improvement in their situation, over half positively assessed the current state of their business, and nearly a third of enterprises increased their workforce.

In the services sector, the index rose to 59 points, marking one of the strongest sector performance figures. The primary driver of growth was a strengthening of business expectations, with more than three-quarters of companies anticipating further business expansion in the coming months.

In industry, the index rose to 49 points, up three points from May. Despite a more conservative evaluation of the current situation, industrial enterprises demonstrate a high level of optimism: 74 percent of executives expect further business growth, and 55 percent plan to increase headcount.

Fewer Obstacles for Businesses

According to CERC, 60 percent of entrepreneurs reported no major obstacles to doing business in June, three percentage points higher than in May. The most favorable environment was noted in services, agriculture, construction, and industry.

Among the main factors limiting business activity, respondents most frequently cited taxation issues (20 percent), banking system and credit availability challenges (14 percent), insufficient demand (8 percent), and other financial constraints (8 percent).

Specific challenges varied by industry. Agricultural enterprises were primarily concerned with financial issues and obtaining land plots; industrial companies cited electricity supply and credit access; construction businesses highlighted financial limitations; and services providers pointed to tax administration and consumer demand levels.

CERC evaluated the June survey results as demonstrating sustained business optimism and a gradual improvement in entrepreneurial conditions across Uzbekistan, despite lingering sector-specific challenges.