Zimbabwe business confidence index slows down in Q1

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ZIMBABWE’S manufacturing industry is expecting a rebound of the Business Confidence Index in the third quarter after a slowdown in industrial activities during the first three months of the year.

Findings of the first quarter survey conducted by the Confederation of Zimbabwe Industries (CZI) indicates a slowdown in business activities during the first quarter.

A challenging economic environment characterised by the closure of the formal business activities due to the COVID-19 pandemic is cited as a key factor that contributed to a drop in business activities.

CZI president Mr Henry Ruzvidzo, says high costs, as well as erosion of disposable income, also contributed to the subdued operating conditions with recovery hopes now being pinned on the reopening of the economy.

“Indeed it was tough for the manufacturing sector during the first quarter as most of the firms could not operate above expectations however we anticipate recovery in growth during the third quarter,” said Ruzvidzo.

Capacity utilisation has also been low in the first quarter with CZI calling on government and private sector to focus on import substitution and value addition. – ZBC