IMF forecasts Zim economy rebound in 2021

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Harare, (New Ziana) – Zimbabwe’s gross domestic product will grow by 4.2 percent next year, the International Monetary
Fund said on Friday, a strong rebound from a slump of 10.4 percent it projects this year owing mainly to Covid-19.

In its October regional economic outlook report for Sub-Saharan Africa, the IMF said the country, like the rest of the region had faced an “unprecedented health and economic crisis” as a result of Covid-19.

Titled “A difficult road to recovery,” the Breton Woods institution report says the sub-regional economy was expected to contract by three percent this year, but grow by 3.1 percent next year.

“This outlook is subject to some key downside risks, particularly regarding the path of the Covid-19 pandemic, the resilience of the region’s health systems, and the availability of external financing,” the IMF said.

“Policymakers aiming to rekindle their economies now have fewer resources at their disposal and will likely face some difficult choices.”

The IMF lauded Zimbabwe for being one of the countries that improved the reach and responsiveness of social protection programmes during the period through the use of mobile money and electronic cash transfers.

The Zimbabwean government has said the economy performed much better than expected when the Covid-19 outbreak peaked and has in turn forecast the economy to slump by 4.5 percent this year, and grow by a whopping 7.4 percent next year.

The recovery is expected to be driven by improved consumption and investments.
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