MCCI: Mauritius business confidence up in 1st quarter 2015as domestic demand recovers
The business confidence index for Mauritius is favourable, depicting slow economic recovery and positive consumption confidence in the first three months of 2015; although certain sectors continue to be at risk, causing the future economic environment to depend on the performance of the upcoming months. (Image: labalisemarina.com)
Business confidence in Mauritius improved in the first quarter, driven by a recovery in domestic demand, according to a survey from the Mauritius Chamber of Commerce and Industry (MCCI) which showed that the quarterly confidence index rose to 87.9 points from 82.5 points in the last quarter of 2014.
This also signals a second consecutive increase in the index, which has not been seen since 2010,such that the business confidence index had increased from 77.5 points in the third quarter of 2014 to 82.5 points in the fourth quarter of 2014, and has now again increased to 87.9 points in the first quarter of 2015.
The overall assessmentreveals that the confidence of entrepreneurs in the island economy was at its lowest rate yet for five years in the third quarter of 2014, at 77.5 points, and thissecond consecutive increase to 87.9 points in the first quarter of 2015heralds“investments and growth”, announcedMCCIeconomistRenganaden Padayachy.
According to Renganaden Padayachy, this increase was mainly caused by an improvement in the situation of the entrepreneurs as they realised more sales upon direct increase in domestic demand.
However, certain sectors could face difficulties in the coming months, as there is a uncertainty with regard to the future ofsuch sectors, such as the commerce cluster for instance, where traders must get ready to face challengesover the next three months in particular.The analyst stressed that the next three months will accordingly determine whether there will be an economic recovery.
The above assessment shows the island economy has slowly been recovering from the global financial crisis, which dampened tourist arrivals, particularly from Europe.
The government’s decision to increase the old-age pension has already had a positive impact on consumption but a further increase in public investment is necessary to stimulate economic recovery, Renganaden concluded.