Mozambique: Economic Climate Indicator falls to 16-year low – INE

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Mozambique: Economic Climate Indicator falls to 16-year low – INE

3:38 CAT | 30 Jul 2020

Photo: Lusa

Mozambique’s Economic Climate Indicator (IICE) fell in May to its lowest level in 16 years, reflecting the impact of the Covid-19 pandemic worldwide, the National Statistics Institute (INE) has announced.

The Index fell to a value of 79.2, the same recorded in January 2004, when it was created.

“Businesspeople’s confidence in the Mozambican economy, expressed by the ICE, continued to fall for the third consecutive month. Once again, the respective balance stood at the lowest level of the respective time series,” the INE bulletin reads.

The situation “was influenced by the continuous fall in job and demand expectations, which have been decreasing for the third and fourth months respectively,” especially “micro and small companies, which have been severely affected”.

All sectors have been affected, with the emphasis on services, transport, accommodation and catering, “which was sufficient to balance out the slightly positive assessment of confidence in the construction sector,” the INE adds.

The Confidence and Economic Climate indicators are a monthly publication on the economic situation in Mozambique, compiled on the basis of a survey of companies in the non-financial sector carried out every month by the INE.

“The study expresses the opinion of economic agents about the evolution and perspective of their activity, particularly on employment, demand, orders, prices, production, sales and activity limitations,” the INE explains.

Source: Lusa