Lower Durban business confidence not a concern - expert
Durban has experienced a slight drop in business confidence in the fourth quarter of 2024
This was the outcome of the latest Durban Business Confidence Index compiled by the Macroeconomics Research Unit at the University of KwaZulu-Natal.
It dropped from 63.01 in the previous quarter to 60.74 index points.
Doctor Ntokozo Nzimande from UKZN's Macroeconomics Research Unit says there’s nothing to worry about.
"But we are happy that it has not dropped below 50 index point because that is a point of neutrality where the investors are not sure about the future directions of this environment in eThekwini.
"Now, because it is above 60 it means that there is still a bit of confidence, although it is dropping, “said Nzimande.
He says business confidence improved by 59% on a year-on-year basis, implying that business conditions significantly improved in 2024 compared to 2023.
Nzimande explains the possible reason behind the quarterly drop.
"There is some dispute regarding the formation of the government in KZN and that may affect the confidence of investors, because they are not sure what exactly will happen and what future policies would look like if there are changes in government.”
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