Business confidence sags in Q1

The reduced level of optimism has largely been attributed to the anticipated deceleration in the growth of exports and imports of goods and services, production, inventories, profitability as well as investment in buildings and plant/machinery. Much of the pessimism is due to weaker global demand and the adverse impact of the Ukraine and Israel-Hamas wars.

However, firms surveyed by the BoB expect that business conditions will improve in the second quarter of 2024 through the 12 months to March 2025, supported by the anticipated improvement in employment and business investment. Improvement is expected in the output of sectors such as manufacturing, agriculture, and retail as well as accommodation, transport and communications.