Business confidence in Mozambique increased in the third quarter of 2024, with the macroeconomic environment index rising from 48 to 53.
The information was provided this Wednesday (12) by the President of the Confederation of Mozambican Economic Associations (CTA), Agostinho Vuma, during an Economic Briefing organised by the CTA itself, on the subject of ‘Business Dynamics in the 3rd Quarter and Analysis of the Current Situation’.
‘This growth is essentially due to the continued downward trend in prices, with average inflation falling from 4.68 per cent to 3.88 per cent. This phenomenon reflects the increase in the supply of agricultural products on the domestic market and the stability of fuel costs,’ explained Vuma during the presentation of the CTA’s economic report for the third quarter of 2024.
The CTA president emphasised, however, that the advances in the macroeconomic environment have not been reflected evenly in all sectors. ‘The economic strength indices were boosted by the continuation of agricultural commercialisation and cost containment. However, there was a reduction in sales volume, associated with weak domestic demand, rising logistics costs and input prices in the agricultural sector,’ he said.
With regard to the labour market, Vuma pointed to a deterioration, with the employment trend index falling from 116.25 in the second quarter to 109.79 in the third quarter. ‘This decline reflects a reduction in the possibility of hiring workers, with companies choosing to recruit temporary labour to the detriment of permanent contracts throughout the period,’ he said.
The report also emphasised that, despite the stability of fuel prices, limited access to foreign currency remains a structural challenge for the Mozambican economy, affecting various productive sectors.
The analysis concluded that although the indicators show signs of progress in the macroeconomic environment, the challenges related to the labour market, logistics costs and access to foreign currency need attention to guarantee the sustainability of economic growth in the medium and long term.
The event brought together representatives of the private sector, academics and economic analysts, offering a detailed view of the country’s economic situation in the third quarter of 2024.
Text: Felisberto Ruco
