Mozambique’s index of employment confidence interrupted its downward trajectory since March with a substantial increase in August, the National Statistics Institute (INE) has announced.
The Covid-19 counter-measures adopted by the government have plunged many Mozambicans into unemployment, especially in the tourism sector. However, signs of recovery are already in sight.
“This situation was due to the positive evaluation of the indicator under analysis in the sectors of industrial production, transport, accommodation and restaurants and also construction. In contrast, the sectors of commerce and other non-financial services registered a decrease in demand prospects, when compared to the previous month,” the National Statistics Institute (INE) notes.
In general, the economic climate of the companies recovered slightly, thus interrupting the negative trend apparent since February. This slight recovery enjoyed a positive contribution from the employment and demand perspectives, which increased substantially in the reference month.
By sector, the INE reports, the slight increase in business confidence in the economy was due to the favourable situation in the industrial production, transport, construction and other non-financial services sectors, which together supplanted the low credit status of entrepreneurs in the remaining sectors surveyed in the period under review.
The INE estimates that, on average, 57% of the surveyed companies faced some obstacle in the month of August, a 6% decrease in companies considering their activity hindered when compared to the previous month.
This performance was influenced by the decrease of companies experiencing difficulties in all surveyed sectors, with an emphasis on the transport, accommodation and restaurants sectors, as well as construction, which registered a considerable decrease in the relative frequency of companies reporting obstacles to their performance.
Still in August, the confidence indicator for the accommodation, restaurant and similar sectors registered a slight decrease, after signs of recovery in July, with the respective level being below that observed in the same month of 2019.
The negative trend in these sectors was due to unfavourable assessments of turnover, despite the current demand, and also despite the prospects for demand having improved in August.
In line with the sectoral summary indicator, the outlook for hotel capacity was also slightly reduced compared to the previous month. Paradoxically, the price outlook was slightly increased.
It is estimated that around 75% of the companies in this sector faced some constraints in the month under analysis, representing a decrease of 8% compared to the previous month.
The main constraints mentioned by economic agents in the sector were competition (14%) and other non-specified factors (34%).
By Edson Arante
Source: O País via Club of Mozambique