Slight Improvement in Business Sentiments with Strong Agricultural Sector Performance
The Business Climate Index (BCI) improved marginally by 6 index points from 81 in the previous quarter (April to June 2024) to 87 in the current quarter (July to September 2024). Despite the slight improvement, perceptions of doing business during the quarter remain below potential. The registered slight improvement during the current quarter was buoyed on a favourable general business environment, reduction in input costs and salary improvements due to improvements in the macroeconomic environment, specifically, the slowdown in inflation and favourable exchange rate movements. The agriculture sector registered the highest improvement in business perceptions, registering an increase of 21 index points, from 78 in the previous quarter to 99 in the quarter under review. The favourable improvement in the agriculture sector was due to the increased credit to the sector and the onset of the harvesting season for seasonal crops for most parts of the country. The near-term business sentiments (October-December 2024) indicate that conditions for doing business are expected to get better, buoyed on expected improvement in the business environment, reduced cost of inputs and improvements in business activity possibly signalling the onset of the festive season.
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| Business Climate Index issue 48 (2).pdf | Download |
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- Published Jan 7, 2025