Uzbek Entrepreneurs Report Stronger Business Climate

The rise was largely due to higher current activity. Photo: Oxford Management Centre

On the eve of Entrepreneur’s Day, the Centre for Economic Research and Reforms (CERR) released its latest nationwide survey assessing Uzbekistan’s business climate. The results reveal steady improvements across most sectors, with entrepreneurs showing confidence in future growth.

Overall Trends

In July, the composite business climate index rose to 52 points, an increase of five compared with the same month in 2024. The rise was largely due to higher current activity, with the current situation index climbing by 14 points to reach 44. This measure reflects how entrepreneurs assess sales, demand, employment, access to resources and operational stability.

Although the expectations index eased slightly from 66 to 59 points, it remains at a solid level, indicating that business leaders maintain confidence in the country’s economic prospects.

According to the survey, 37% of entrepreneurs reported improved conditions over the past three months, while 42% observed higher demand. One in four businesses (24%) expanded their workforce, pointing to growth in activity and the need for more labour. Looking ahead, 66% of respondents expect demand to rise, more than half (53%) forecast employment growth, and a quarter (25%) anticipate price increases, reflecting inflationary pressure.

Sectoral Developments

Agriculture saw its business climate index rise to 50 points, up four on the year. The current situation index increased to 39, and expectations strengthened to 61. Over 40% of agricultural entrepreneurs reported better conditions, while nearly 80% expect further growth.

Industry showed the most notable recovery. Its index climbed to 50 points, six points higher than in 2024. The current situation index jumped from 20 to 44, reflecting a revival in production. More than half of respondents rated conditions as satisfactory, 21% reported job growth, and nearly three-quarters expect continued improvements.

Services also posted gains, with the index reaching 54 points, up three on the year. The current situation index rose sharply to 48, as 47% of entrepreneurs rated their position as good. While optimism remains high, expectations of stronger demand dropped slightly to 64% compared with 69% last year.

Construction recorded an index of 50 points, five points higher than last year. The current situation index rose to 38, and expectations edged up to 63. Improved business conditions were noted by 42% of entrepreneurs, up significantly from 25% a year earlier.

Outlook

CERR concludes that Uzbekistan continues to make progress in creating a favourable business environment. The rise in current activity and the broad base of optimistic expectations highlight the resilience of domestic demand and the adaptability of the private sector.

Uzbekistan Business Climate Index is compiled by CERR using surveys of more than 1,000 enterprises across agriculture, industry, services and construction. The methodology is based on the approach developed by Germany’s IFO Institute, capturing both current assessments and forward-looking expectations of entrepreneurs.