Zim on a path to economic rebound

Zimbabwe has been executing wide and far-reaching reforms that will result in the country registering a more than 7 percent economic growth this year.

The anticipated socio-economic growth has been stirred essentially by reforms put in place to enhance production, which has risen remarkably across various sectors of the economy in the last few months.

Veteran economist Eddie Cross acknowledged the reforms put in place by the Second Republic led by President Emmerson Mnangagwa and he implored international financial institutions such as the International Monetary Fund (IMF) to hail such developments.

“Dramatic changes have taken place in the economic sphere. I am deeply critical of people like the IMF, they know what is going on, they get information from our systems on a regular basis, they know the consequences but they have given them (Government) absolutely no credit.

“For the past two years, very substantial progress has been made. We have seen major changes. Inflation has gone down, I think the economy has now started to respond.

“My view is 2021 is going to be a year of growth. There is no doubt that this team that took over in 2017 has committed itself to fundamental and substantial changes,” Cross said.

In addition, Cross said there is relative price stability and also local manufacturers are packing the country’s shops, an indication that local industry is rising to the challenge.
Despite the Covid-19 pandemic and its detrimental effects on international travel and tourism, successes in the agriculture and mining sector are to offset the negatives.

Global Information and Early Warning System (GIEWS) in their recent publication stated that food security is anticipated to improve in 2021 due to food availability.

“The expected large harvest in 2021 is anticipated to significantly improve households’ food supplies and to result in a decrease in the number of people needing assistance in the second and third quarters of the year.

“The official monthly food inflation rate was estimated at 1.7 percent in April, lower than March’s level and the exceptionally high rates registered in mid-2020, when it peaked at 38 percent. The slowdown in price increases partly reflects the relative stability of the official exchange rate since the last quarter of 2020 that has helped to temper imported inflation as well as the large quantities of grain imports, which have shored up domestic supplies,” read the paper.

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