Treasury optimistic about an estimated 7.4% economic growth

Zimbabwe’s Treasury is still optimistic about its estimated 7.4% economic growth while President Emmerson Mnangagwa feels pessimistic about it saying the projection would have been revised since it did not account for new waves of the pandemic.

Finance and Economic Development Minister, Mthuli Ncube had predicted a 7.4% economic growth in 2021 from the 4.5% of 2020. These expectations were derived from consumption, which is expected to contribute 2.6% and investment at 5.8%.

However, President Emmerson Mnangagwa recently said that the Treasury Department would have to revise its projection because of expectations that new waves of coronavirus infections will curtail economic output.

The International Monetary Fund (IMF) expects the economy of Zimbabwe to grow 3.1% this year saying the country continues to have very limited access to external concessional support. This also opposes the Treasury’s projected 7.4%.

On the contrary, Finance and Economic Development Minister Mthuli Ncube believes that his estimate is achievable basing his optimism on the expected recovery in agriculture.

“Zimbabwe is coming through this recovery phase quite well. Mining remains strong. Our infrastructure investment program is also quite strong. There’s really a recovery across the board, except the tourism sector,” Ncube told the Bloomberg TV.

Zimbabwe currently has an annual inflation of 241%. The foreign exchange rate is at 84 while the gap between the official exchange rate and parallel market has widened by 36%.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Zimbabwe detects its first omicron case

Zimbabwe has detected case of Omicron variant Vice President Constantino Chiwenga who is a…