World Bank has announced in its latest outlook report, Global Economic Prospects, in which it sees the world economy expanding by 2,5 percent in 2020, that Zimbabwe’s gross domestic product (GDP) should grow by at least 2,7 percent this year.
How Zimbabwe is going to achieve this is not yet known as shortage of foreign currency and electricity is already weighing down recovery of industry and services thus the continued rise in inflation.
This comes after natural disasters such as drought as well as tropical cyclones that struck parts of Zimbabwe last year, plunged the economy into projected negative economic growth of minus 7,5 percent.
The World Bank reckons that agriculture drove growth in some African countries while in others growth softened on decelerating external demand and lower commodity prices as well as the effect of natural disasters.
“Activity has been further constrained by persistent shortages of food, fuel, electricity, and foreign exchange,” the World Bank said in its latest global report.
The World Bank expects Zimbabwe to post modest, but slower growth of 2,5 in 2021, but growth to pace up at 2,8 in 2022. Zimbabwe’s forecast growth this year falls behind most African countries, but is ahead of Zambia and South Africa.
Growth this year according to the government’s prediction is however premised on the assumption of better rainfall, improved macro-economic stability from tighter fiscal and monetary policies, improved power supply and supportive tax and non-tax incentives to stimulate production.
Key priorities of the 2020 National Budget entail enhanced productivity and growth, job creation, competitiveness, promotion of sustainable and inclusive development, export diversification as well as import substitution support by global re-engagement