The year 2021 was a successful one for the economy of Uzbekistan and and turned out to be decisive in achieving one of the main goals of the ongoing reforms - strengthening macroeconomic stability and maintaining high economic growth rates.
The economic growth rate last year was 7.4%, higher than previously forecasted 5-6% and very impressive against the backdrop of low economic growth of 1.6% in 2020, driven by the coronavirus pandemic.
Analysis of business activity in the context of the regions of the Republic of Uzbekistan is monthly calculated by CERR on the basis of operational data (monitoring in all regions of the republic, according to the data of the State Customs Committee, State Tax Committee, Central Bank and UzEX).
The monitoring results showed that the volume of tax revenues of the republic over the past year increased by 23.5% compared to 2020. At the same time, a significant increase in tax revenues was noted in Khorezm (by 37.5%), Navoi (by 34.6%), Kashkadarya (by 31.7%), Tashkent (by 30.5%), Samarkand (by 30. 5%) regions and in Tashkent city (by 31.6%).
The growth of tax revenues was achieved through the creation of equal competitive conditions for business activities, and by reducing the regulatory and administrative burden, automating procedures and simplifying the procedure for complying with tax laws. Revenues from customs payments for the analyzed period increased by 34.4%. The largest increase in revenues was noted in Jizzakh (by 3.6 times), Syrdarya (by 2.1 times), Khorezm (by 1.9 times), Samarkand (by 57.9%), Kashkadarya (by 55%), Fergana (by 54.5%), and in Namangan regions (by 48.7%).
The increase in the volume of receipts of customs payments indicates the growth of foreign trade turnover. Machinery and equipment, industrial products have a significant share in imports. This trend reflects the creation and modernization of production facilities that will contribute to economic growth in the long run.
According to the State Customs Committee, since the beginning of the year the volume of exports of goods has increased by 36.6% compared to the same period last year. An increase in the volume of exports of goods was noted in Samarkand (by 58.9%), Jizzakh (by 51.1%), Andijan (by 50.6%) regions and in Tashkent (by 51.4%).
The increase in Uzbekistan's exports is explained by the growth of exports of industrial products, food, chemicals and agricultural products. The volume of loans issued by commercial banks for the analyzed period increased by 27.7%. The highest growth in the volume of loans issued is observed in Tashkent (by 45.3 per cent), Namangan (by 28.7 per cent) and Tashkent (by 40.4 per cent).
The increase in the volume of loans issued by commercial banks indicates the gradual improvement of the investment climate and the activities of business structures. These changes also include an increase in the number of entrepreneurs engaged in continuous activities.
During this period, 96,505 new business entities were created, most of which were registered in Samarkand (10,475), Kashkadarya (8,958), Fergana (8,799), Tashkent (7,704) regions and the city of Tashkent (16,140).
The volume of transactions on the Uzbek Republican Commodity and Raw Materials Exchange for the analyzed period increased by 62.2%. A significant increase in exchange activity was observed in Bukhara (94.0 per cent), Tashkent (70.7 per cent), Khorezm (66.2 %), Syr-Darya (64.4 %), Namangan (62.3%), Kashkadarya (60.5 % and Tashkent (2.3 times). Growth in the volume of transactions in these regions was ensured by an increase in the sale of such goods as sugar, feed grain, rolled ferrous metals, gasoline, industrial seeds, polyethylene, diesel fuel, etc.
The gradual recovery of the economy in 2021 can be seen in the results of a monthly survey of enterprises to assess the state of the business environment in Uzbekistan, conducted by the Center for Economic Research and Reforms. The study reflects the sentiments of businesses across the country.
Center for Economic Research and Reforms
Karamat Nurillaev
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