Zim economic recovery expected to continue into next year

Zim economic recovery expected to continue into next year

Harare (New Ziana) – Government has projected Zimbabwe’s economy to grow by 5.4 percent in 2022, carrying on the growth trajectory expected this year despite the COVID-19 pandemic.

This year, government has said it expects economic growth of around 7 percent while the International Monetary Fund recently projected a slightly lower growth rate of around 6 percent on the back of a bumper harvest, improved power supplies and an increase in manufacturing and construction.

Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said the growth projections were contained in the Budget Strategy Paper for 2022, which was presented to Cabinet by Finance and Economic Development Minister Mthuli Ncube this Tuesday.

“Cabinet wishes to advise the nation that the Zimbabwean economy is projected to grow by 5.4 percent in 2022, anchored on growth in the mining, manufacturing and electricity generation sectors, among others,” she said.

“Government revenue is expected to improve from 16.4 percent (ZW$390.8 billion) of the Gross Domestic Product (GDP) in 2021 to 17.8 percent (ZW$533.2 billion) in 2022, while expenditure will increase to 19.4 percent (ZW$579.1 billion) of the GDP from the 18.2 percent (ZW$421.6 billion) in 2021.”

Mutsvangwa said the 2022 National Budget would prioritise sustaining macroeconomic stability, creating a conducive environment for business investment and improving the standards of living.

“As such, the priority areas of 2022 are Inclusive growth and macro-economic stability, developing and supporting productive value chains, optimising value in our natural resources, Infrastructure, ICTs and digital economy, social protection, human capital development and well-being, effective Institution building and governance and engagement and re-engagement and debt restructuring,” she said.

Meanwhile, Mutsvangwa said Cabinet had also adopted the 2021 Mid-Year Fiscal Policy and Economic Review.

“Cabinet advises the nation that the details of the 2021 Mid-Year Fiscal Policy will be in the statement that the Minister will present to Parliament this Thursday.”
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