CENTER FOR ECONOMIC RESEARCH

How did entrepreneurs assess the state of the business climate — CERR survey

For reference: CERR conducts a monthly survey among 1 thousand entrepreneurs across the country representing various sectors of the economy.

The consolidated business climate index is formed on the basis of the values of the indicators of the current state and expectations. Those, in turn, demonstrate a level of anxiety about the existing obstacles in doing business.

In December, the growth of the consolidated index was significantly influenced by the dynamics of indicators in the construction and industrial sectors. Improvements were also observed in agriculture and in the service sector.

43% of respondents rated the current state of their business as "good", the share of those who noted as "bad" was 11%.

20% of enterprises increased the number of employees, and 40% of entrepreneurs noted an increase in demand for goods/services.

In December, the value of the indicator of the current state of the business climate remained unchanged. Nevertheless, there was a jump in the construction sector.

The indicator of expectations of business development prospects in the next 3 months remains at a fairly high level – 67 points, which is supported by high optimism in the field of agriculture – 80 points and construction – 81 points.

The share of entrepreneurs expecting an improvement in the general state of business in the next 3 months was 75%, 64% expect a further increase in demand for goods and services, another 64% plan to increase the number of employees. 24% of entrepreneurs expect an increase in prices for their goods/services in the next 3 months.

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

Analysis of changes in indicators

The growth of the consolidated indicator in December is partly seasonal. A similar trend was observed from November to December 2020 and 2021. Then, as in 2022, the growth was 11 points.

On the other hand, the reduction of various obstacles in doing business can also be a factor of improvement in indicators. So, for example, the share of respondents noting the absence of any obstacles increased by 2%.

The largest share of entrepreneurs who noted relief in doing business was noted in the service sector, an increase of 7%. On the contrary, in the sphere of construction, agriculture and industry, obstacles have become more frequent.

In general, entrepreneurs in the republic have become less concerned about access to land plots and tax administration. The problems related to tax administration in the industrial sector have been significantly reduced.

In agriculture, the positive dynamics is characterized by easier access to water and electricity, in particular, the share of respondents noting them as an obstacle decreased by 4%. Agriculture also stands out as the most optimistic among other industries – 82% of respondents expect improvement in the next 3 months.

In the construction sector, problems with access to land have decreased by 10%. At the same time, the sector's need for financing remains quite high compared to other industries.

In the service sector, entrepreneurs have become less concerned about problems related to access to land, tax administration and high tax rates.

Feruzbek Davletov, CERR

Tel.: (+998) 78 150-02-02 (416)

Public Relations Service of the CERR

Tel.: (+998) 78 150-32-20 (417)