Mauritius shows improvement in business confidence index in last quarter of 2014
The business survey conduced by the MCCI indicates an improvement in the performance of companies in the fourth quarter of 2014 after three quarters of consecutive decline. (Image: Dentons)
Mauritius has shown a rise in business confidence by 6.4% to 82.5 points in the fourth quarter of 2014, according to the quarterly survey by the Mauritius Chamber of Commerce and Industry (MCCI) released yesterday.
The improvement in the business confidence index is likely to have favourable effects on investment and employment in the economy.
The business survey conduced by the MCCI indicates an improvement in the performance of companies in the fourth quarter of 2014 after three quarters of consecutive decline.
The business confidence index of companies has risen to 82.5 points, that is 5 points (+ 6.4 %) over its level in the third quarter of 2014, as made public by MCCI early in the afternoon yesterday.
“After three quarters of slump, the outlook on the Mauritian economy seems to be improving,” comments the MCCI.
In the business survey conducted between December 23, 2014 and January 14, 2015, the MCCI has shown that the indicator of business climate was rising “strong” in the last quarter of 2014.
It gives some explanation for the rise in business confidence, on one hand, by way a steady improvement in entrepreneurs’ views of the present economic situation and, on the other hand, by positive outlook on the future of the economy.
The MCCI notes that the balance of opinions are positive concerning entrepreneurs’ perspective on the evolution of business.
“A quarter of the panelists noticed an improvement in sales during the last quarter and approximately 60% noted a stabilisation of turnovers,” announced the Chamber.
Besides the business survey, the MCCI also conducted an evaluation of the indicators of “Cost of Doing business” on the growth rate of Mauritius.
This analysis aims at estimating and at identifying the main drivers of growth, which could boost the economic performance of the country. The trade facilitation body raises a major concern in the form of lack of research and development (R&D), which can direct the decision-makers on the decisions and the reforms to be undertaken for a better impact on the economic growth rate.
Data collected between 2005 and 2014 by the of Statistics Mauritius and the Bank of Mauritius has identified four measures to improve the economic performance of the country. They are: the simplification of procedures for start-ups, decline in prevailing tax rate, lowering costs of trade across borders and cutting costs for grant of building permits.
If Mauritius engages in these steps, concludes the MCCI, the economic growth rate could exceed 6% even in the short and medium-term horizons.