PORT LOUIS - Business confidence in Mauritius has continued to drop, a third quarter survey by the country’s Chamber of Commerce and Industry (CCIM) showed on Monday.
The quarterly confidence index lost 2.1 points to stand at 77.5 points, the lowest level ever since its launch in 2010.
While releasing the report, CCIM leaders said this was the third consecutive quarter when the confidence levels were dropping “hence threatening the forecasted economic growth in 2014.”
CCIM’s head of economic division Renganaden Padayachy said eleven factors had negatively impacted on the performance of businesses, with over 60% of surveyed business owners saying they had been hit by low demand.
Other negative factors noted by the business owners include “delayed payment, fierce competition on the local market, shortage of skilled manpower, unpredictability of cost of doing business, unfavorable exchange rate, high personnel turnover, lack of government support, high cost of capital and difficulty in accessing loans.”
However, CCIM noted that business had slightly improved in the third quarter of 2014 due to favorable conditions in some markets, especially emerging markets as well as improvement of connectivity.
At the same time, CCIM hopes to see a better fourth quarter due to improved purchases for the end of year festivities, something that is likely to have a positive impact on employment and investment.
The chamber further noted that inflation rate which was contained in 2013, will be maintained at a reasonable level in 2014.