Uzbekistan’s business climate saw a significant improvement, with a rise of seven points to 71 in January this year compared to the previous month. This positive shift, as reported by the Centre for Economic Research and Reforms, is attributed to growth in key sectors such as industry, construction, and agriculture.
The current state of business is assessed as “good” by 41% of respondents. However, it’s worth noting that 13% of respondents assessed the state of their business as "bad". Despite this, there is a strong sense of optimism among entrepreneurs, with 79% believing that their situation will improve in the next three months. Furthermore, 72% of entrepreneurs plan to hire more employees, indicating a positive employment forecast for the country.
Industrial sector
In the industrial sector, businessmen have expressed concerns about access to finance and tax rates. The top corporate tax rate in Uzbekistan is 15%, which may be a contributing factor to these concerns. Despite these challenges, the industrial sector has seen a growth of 6% in 2023.
Agricultural sector
For the agricultural sector, commonly referred to as “agrarians”, the main issue raised was about access to water supply. Agriculture consumes 90% of Uzbekistan’s water resources. The state is subsidizing the adoption of water-saving technologies and plans to save at least 7 bn cubic meters of water by 2026 through efficiency improvements.
Construction sector
The construction sector, on the other hand, has seen an improvement in access to finance and land. At the end of 2019, Uzbekistan adopted the Law on Investments and Investment Activity, which means that land can now be privatised. This, along with the developments above, conveys a clear message to the investment community that Uzbekistan is open to investment and signals the country’s commitment to attracting more capital.
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