The boost in business confidence is a step in the right direction, but there is still room for improvement. This is what macroeconomist Edin Mujagic says about the Central Bureau of Statistics (CBS) report. ‘There’s still a lot of sadness underneath.’
The CBS report shows that business confidence continues the upward trend seen in the first quarter. According to Mujagic, there are now more companies indicating that their profitability is declining, “and that’s perfectly consistent with yesterday’s message,” he says. “That the Dutch economy didn’t grow in the first quarter.”
“The drop in profitability can be perfectly reconciled with the lack of growth in the economy”
Problems faced by entrepreneurs include staff shortages. Although that shortage is shrinking, Mujagic says. Which also reconciles with the fact that the economy is not doing well. “This solves the problem by itself.”
Positive news
Mujagic points out that entrepreneurs actually have more faith in the economy, but that the demand for their goods and services is declining. “And that’s an indicator that the economy just isn’t doing well,” he explains. “As an entrepreneur you face many challenges, and while trust is growing, it shouldn’t have a name yet.”
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
