Center for Economic Research and Reforms analyzed the business activity of the regions
21/09/2021 23:05
Center for Economic Research and Reforms analyzed the business activity of the regions
21/09/2021 23:05
Tashkent, Uzbekistan (UzDaily.com) -- Small business and private entrepreneurship are identified as priorities for the economy of Uzbekistan. Currently, the government provides many opportunities to support entrepreneurs, as an enabling business environment is critical to ensuring positive business activity. So, over the past five years, about 2 thousand laws, decrees and resolutions have been adopted to develop this sector. These opportunities include providing loans at low interest rates, providing tax preferences, low import tariffs, reducing bureaucratic barriers when starting and closing firms, etc.
To assess the economic situation in the country, experts from the Center for Economic Research and Reforms (CERR) conduct monthly monitoring of the state of business activity at the regional and district levels.
Analysis of business activity in the context of the regions of the Republic of Uzbekistan is monthly calculated by CERR based on 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 August 2021 increased by 30.8% over the same period of last year. At the same time, a significant increase in tax revenues was noted in Kashkadarya (by 41.2%), Khorezm (by 39.2%), Navoi (by 38.9%), Samarkand (by 36.2%), Tashkent (by 35, 7%) regions and Tashkent city (by 39.1%).
The increase in tax revenue is associated with an improved business environment. 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 for their issuance have been reduced by 2 times. Unnecessary checks have been canceled, restrictions related to the circulation of cash, currency and raw materials have been lifted. As a result of the measures taken, the number of new business entities increased rapidly, and the existing ones expanded their activities. Thus, the number of entrepreneurs over the past five years has almost tripled and the number of operating entrepreneurs is 80% more than in the same period of last year. In addition, many business people have expanded their business nationwide, creating thousands of jobs and growing into large, successful companies. A class of entrepreneurs with their own brand in the domestic and foreign markets began to form.
Receipts from customs payments for the analyzed period increased by 47.5%. The largest increase in the volume of receipts was noted in Jizzakh (5.0 times), Syrdarya (2.8 times), Khorezm (2.1 times), Ferghana (81.7%), Samarkand (84.8%) regions, in the city of Tashkent (by 39.1%) and in the Republic of Karakalpakstan (by 38.8%).
An effective system of customs payments is one of the main factors for 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 October 1, 2020 in accordance with the Decree No. PF-4853 of 10/2016 led to an increase in revenue from customs duties.
According to the State Customs Committee, the volume of exports of goods since the beginning of the year increased by 39.6% compared to the same period of last year. The growth in the volume of export of goods was provided in Andijan (by 64.2%), Samarkand (by 61.6%), Syrdarya (by 56.3%), Jizzakh (by 54.4%), Tashkent (48.2%) regions, in the city of Tashkent (by 47.5%) and in the Republic of Karakalpakstan (by 31.2%).
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 manufactured goods, food products, chemicals and agri-food products.
The volume of loans issued by commercial banks for the analyzed period increased by 23.7%. The largest growth in the volume of issued loans is observed in Navoi (by 30.4%), Namangan (by 29.3%), Tashkent (28.3%), Bukhara (by 27.7%), Surkhandarya (by 29.3%) regions, in the city of Tashkent (by 33.5%) and in the Republic of Karakalpakstan (by 19.6%).
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, 67,016 new business entities were created, the largest number of which were registered in Kashkadarya (7,442), Samarkand (7,105), Fergana (6,010), Tashkent (5,645) regions and in Tashkent (11,580).
The volume of transactions on the Uzbek Republican Commodity and Raw Materials Exchange for the analyzed period increased by 59.3%. A significant increase in stock exchange activity is observed in Bukhara (by 88.6%), Tashkent (by 79.0%), Namangan (by 62.4%) 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.
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