Energy supply disruptions remain major challenge for businesses in Uzbekistan – Central Bank

According to the survey, 62 percent of respondents assessed current business conditions as better than in the second quarter. Entrepreneurs attributed improvements in the business environment to better-quality banking services, a more competitive market, improved road infrastructure, simplified licensing procedures, and reduced administrative interference.

“At the same time, the situation regarding the level of monopolization, tax administration, energy supply, and customs tariffs remained at the level of the previous quarter,” the review said.

Between July and September, indicators of economic activity remained largely unchanged compared with April–May. In particular, the share of entrepreneurs reporting no change in order volumes, freight transportation, energy consumption, and demand for additional labor increased significantly compared with the second quarter. Growth was recorded in Surkhandarya, Syrdarya, Namangan, and Navoi regions, as well as in Tashkent and the Republic of Karakalpakstan.

In the third quarter, capacity utilization rose noticeably in Syrdarya, Bukhara, and Namangan regions and in Tashkent, while declines were reported in Andijan, Jizzakh, Surkhandarya, Fergana, and Khorezm regions.

Entrepreneurs cited several factors preventing businesses from operating at full capacity. Nationwide, power and natural gas supply disruptions were identified as one of the main obstacles for most enterprises. Other constraints included a lack of working capital, rising fuel prices for vehicles, complexity in the tax system, and high rental costs.

The Central Bank noted that, in the medium term, entrepreneurs’ confidence in the country’s economic development remains positive.