According to the Confederation of Economic Associations of Mozambique (CTA), the business strength index stagnated in the fourth quarter, at 29%, the same as in the third quarter.

The CTA says that behind this trend was the impact of the deterioration of the macroeconomic environment index by 3 percentage points, from 50% to 47%, between the 3rd and 4th quarters, factors that were reflected in the increase in production costs and in the corporate burden on the financial sector.

According to the CTA study presented this morning, industrial competitiveness has been boosted by the marginal propensity to consume local goods resulting from private investment in the manufacturing industry, especially food.

For its part, the employment index continued to show the fragility of the labor market, standing at 108.55%, with a greater preference for temporary and part-time jobs.

This situation was acknowledged in the recent World Bank report, which shows that while the country has around half a million people entering the workforce, on the supply side there are only 25,000 vacancies.

"It is our expectation, however, that the dynamics registered in the revision of the Labor Law will have a positive influence on the creation of more job opportunities, with the expected approval of this instrument by the Assembly of the Republic," said the president of the CTA during the presentation of the report.