Mozambique: Economic indicator slips in February – official

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Mozambique: Economic indicator slips in February – official

1:50 CAT | 14 Apr 2021

Maputo. [File photo: Lusa]

The Mozambican Economic Climate Indicator (ECI), which measures business confidence, “slightly worsened the negative assessment in January,” the National Statistics Institute (INE) said on Wednesday.

The trend was recorded in February despite employment outlook and demand indicators forecasting “an upward trajectory for the following months,” it added.

In the monthly balance, the ECI dropped from 89.45 points in January to 89.14 in February, below 98.6, the average of the indicator registered monthly since 2004.

“Sectorally, this unfavourable moment in the Mozambican economic environment” was due to the negative situation “of the accommodation, restaurants and similar sectors, as well as the construction sector, thus supplanting the favourable assessments of the trade, industrial production and other non-financial services sectors,” INE added.

A scenario associated with Covid-19 pandemic prevention measures.

Breaking the ECI down, the demand outlook “registered a slight increase” with improved forecasts “in all sectors, except for the construction and transport branches of the economy”.

The employment outlook “was slightly favourable compared to the previous month, showing signs of recovery for the coming months”, except “in the accommodation, restaurants and similar, as well as transport sectors, which saw their employment outlook decline”.

The ECI is part of the bulletin of Confidence, and Economic Climate indicators, a monthly publication on Mozambique’s economic situation, based on a survey conducted every month by the INE of companies in the non-financial sector.

“The study expresses the opinion of economic agents about the evolution and outlook of their activity, particularly about employment, demand, orders, prices, production, sales and limitations of activity,” the Mozambican statistical authority explains.

Mozambique had, by Tuesday (April 13), a total of 68,871 cases of Covid-19, with 794 deaths and 87% recovered.

Source: Lusa