Uzbekistan's business confidence rises as 64% of firms report better conditions

Business confidence in Uzbekistan has shown notable improvement in the first quarter of 2026, with 64% of businesses reporting enhanced conditions compared to the previous year, as detailed in a recent report by the Central Bank of Uzbekistan.

The survey, which included responses from 2,487 entrepreneurs throughout the country, indicated a positive sentiment across all regions. The percentage of respondents noting better business conditions rose from 56% in the first quarter of 2025 to 64% this year, representing one of the most favorable outcomes seen in recent years.

Entrepreneurs attributed the improved business climate to advancements in banking services, increased competition, streamlined licensing processes, and reduced administrative burdens. However, they also pointed out that challenges related to monopolization, tax administration, energy supply, and customs tariffs have largely remained unchanged.

Economic activity has also seen an uptick during this quarter. Approximately 57% of businesses reported a rise in orders, and evaluations of production levels, freight transport, and the demand for additional workers improved by 8 to 10 percentage points compared to the same period last year.

The demand for labor has remained strong, with 50.4% of businesses indicating a need for more employees, an increase of 5.6 percentage points year-on-year. The highest demand for hiring was noted in the manufacturing, construction, tourism, and agriculture sectors.

On the financial front, 38% of respondents reported an increase in their debt obligations, although there are high expectations for further borrowing. Nearly half of the businesses surveyed anticipate needing more credit in the upcoming months, particularly in construction, manufacturing, household services, agriculture, and catering.

Regionally, the Kashkadarya and Surkhandarya regions reported the highest percentage of entrepreneurs experiencing improved business conditions at 70%, followed by the Fergana Valley at 65%, and Bukhara, Navoi, and Samarkand regions at 63%. Tashkent city and region, Jizzakh, Syrdarya, Karakalpakstan, and Khorezm reported around 60%.

The report also highlighted a strong sense of optimism for the future, with 71% of entrepreneurs expecting further improvements in Uzbekistan's macroeconomic conditions and business environment in the coming years, reflecting ongoing confidence in the nation's economic prospects.

Despite the overall positive sentiment, the survey noted that rising energy costs, inadequate domestic demand, high fuel prices, and limited working capital continue to pose significant challenges that prevent some businesses from operating at full capacity.