Company revenue fell sharply in first half – Mozambique

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Company revenue fell sharply in first half – Mozambique

12:11 CAT | 15 Aug 2016

Economic instability exacerbated the fall in the turnover of Mozambican companies in the first half of the year, according to data from the National Statistics Institute. A fall in demand and rising production costs were the main cause.

Business activity has been showing signs of instability since the end of last year, and the most recent National Statistics Institute (INE) publication shows that it has worsened in the first half of 2016.

Based on the newsletter that publishes the indicators on confidence and economic climate and expresses the opinion of companies surveyed on their progress and prospects, the INE concludes that business confidence fell for the third consecutive quarter, reflecting the unfavourable economic environment.

The worsening economic climate comprises a fall in demand and employment indicators that reflect the reduction in turnover in a scenario where production costs are increasing because of the depreciation of the metical against the dollar and the rise in prices generally.

The INE report shows that almost all sectors reflected the crisis in the first six months of the year, with trade, motor vehicle maintenance, manufacturing and mining, electricity and water, construction, hotels and restaurants suffering most.

According to the INE survey, 39 percent of Mozambican companies faced difficulties between April and June, a 4 percent increase over the previous quarter.

The “Confidence and Economic Environment Indicators” (“Indicadores de Confiança e de Clima Económico”) newsletter is a monthly publication on the economic situation in Mozambique, and expresses the business perspective on employment, demand, orders, prices, production, sales and limitations on activity.

Source: O País