Mozambique: CTA’s Business Robustness Index shows slight improvement in Q2

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Mozambique: CTA’s Business Robustness Index shows slight improvement in Q2

2:51 CAT | 13 Sep 2022

in file CoM

The Business Robustness Index issued by Mozambique’s Confederation of Economic Associations (CTA) rose from 27% to 28% in the second quarter of 2022, though this was “below expectations”, the business association announced.

“The assessment of the national Business Robustness Index (BRI) suggests that, in the second quarter, the business sector maintained the rhythm [of the previous quarter], with the indicator showing a recovery trend, rising from 27% to 28%, although [this is] below what was expected,” the CTA analysis consulted today by Lusa reads.

“The slight expansion of business strength at the national level was supported by the beginning of the agricultural marketing season, as well as by the boost in port and logistics activities, in a scenario freed from the economic restrictions associated with the fight against Covid-19,” the analysis adds.

In terms of index components, the employment indicator showed a slight improvement, between the first and second quarters, the rise from 115 to 116.56 points supported by “seasonal jobs” linked to agriculture.

The CTA estimates that the current quarter (which ends in September) will continue to improve as the effects of Covid-19 dissipate, and thanks to agricultural marketing season peaking and the resumption of activity in the agricultural, entertainment and tourism sectors.

The start of liquefied gas exports from the Rovuma basin and the resumption of external support following the May agreement between the Mozambican government and the International Monetary Fund (IMF) also support the forecast.