Business confidence in Mozambique continued to grow between July and September this year, marking the fifth consecutive quarter of growth, according to data from the National Statistics Institute (INE). The economic climate indicator, which measures business sentiment in relation to current developments and short-term prospects, showed a ‘slight increase’ in the third quarter of 2024, compared to the previous one.
According to the INE, the Business Climate Index (BCI) has recovered significantly in recent years, following a low of 82 points in the fourth quarter of 2021. In the second quarter of this year, the index reached around 100 points and now stands at 102 points, showing a progressive recovery in the economic environment.
The ICEE report indicates that this sustained growth in business confidence was driven by a favourable assessment in the industrial production and trade sectors, especially trade, where demand expectations reached the highest level in five years. This positive perception translates into greater expectations of market expansion and growth in domestic demand.
Also according to INE, the employment expectations indicator also increased in the third quarter, although the overall balance remains below the historical average. All the sectors analysed showed a more optimistic view of employment, with industrial production and trade standing out as the ones that contributed most to this development.
On the other hand, the report notes that 35.9 per cent of the companies surveyed reported operational obstacles in the third quarter, an increase of 8.3 percentage points on the previous quarter. The industrial sector recorded the highest proportion of companies with constraints, with 40 per cent of entrepreneurs in this segment reporting difficulties impacting their operations.
Despite the challenges mentioned, the continued growth of the confidence index reflects a favourable economic climate, which, according to INE, could encourage new investment initiatives and strengthen the private sector in the country. The prospect of stability and economic recovery has been consolidating in Mozambique, supported by a gradual increase in expectations in the labour market and in demand.
