Mozambique :Entrepreneurs’ confidence at 10-year low; major collapse in tourism sector

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Mozambique :Entrepreneurs’ confidence at 10-year low; major collapse in tourism sector

2:24 CAT | 02 Jun 2020

Photo: O País

Economy at Covid-19 speed: on average, 60% of companies faced some obstacle in their operation in April, 1% more than in the previous month.

Business operators’ confidence in the economy has reached its lowest level in the last 10 years, particularly among small and medium enterprises, a survey by the National Statistics Institute (INE) has found.

This situation was influenced by the increase of companies facing constraints in several sectors: accommodation and catering saw an increase of more than 6%, from 74% to 80%, trade and services by 9%, transport by 69%, construction 59% and industrial production by 52%.

“The Economic Climate Indicator continued to register the unfavourable situation it has been recording since March. This was in line with demand expectations, which followed a downward trend for the third consecutive month, and employment, [which] fell for the second consecutive month,” the INE survey reads.

Expected demand has fallen for the third consecutive month, reaching its lowest level in April.

“This worsening [of business confidence] was due to the continued drop in the outlook for demand in the accommodation and catering sector for the fifth consecutive month, exacerbated by the closure of the borders with South Africa and the respective contraction in demand by South African tourists, who are responsible for about 51% of the geographic tourist demand,” the INE survey concludes.

By Edson Arante

Source: O País