Gas and power outages disrupt business growth in Tashkent – Central Bank

From October to December of last year, 53% of surveyed entrepreneurs reported an improvement in the business environment in their areas (compared to 57% in the third quarter). The main positive factors noted were improvements in banking services and expanded lending opportunities. Additionally, obtaining licenses and permits, as well as changes in the competitive environment, contributed to a better business climate.

However, the situation with customs tariffs and restrictions, tax administration, monopolization, road infrastructure, and the gas and electricity supply system has not significantly improved.

In Tashkent, the percentage of respondents who reported improved business sentiment decreased to 52%. By sector, respondents highlighted improvements in manufacturing, construction, education, and public utilities. However, a decline in sentiment was recorded in supply chains, agriculture, trade, and finance.

The Central Bank noted that at the end of the year, the positive trends in gas and electricity supply observed in the third quarter slightly deteriorated. About half of the respondents did not notice any changes, while 30% reported improvements, and around 25% reported worsening conditions.

"While fuel and energy consumption increased compared to the previous quarter, production volumes slightly declined," the regulator stated.

Furthermore, the number of entrepreneurs operating at reduced capacity increased to 55% (compared to 50% in the third quarter). Businesses identified gas and electricity outages as the main obstacle to operations, with the quarterly indicator rising from 19% to 25%.

Other major issues included rising rental costs (17%) and a lack of working capital and demand (16% each), though the Central Bank noted some improvement in these areas. At the same time, complaints about tax administration difficulties, rising fuel costs (16%), and economic uncertainties (14%) have increased.

In the next quarter, 56% of respondents expect an improvement in economic and business conditions (-6 percentage points), 33% do not expect any changes (+8 pp), and 13% anticipate worsening sentiment (+2 pp).