Economic fundamentals in place as diaspora remittances go up

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ECONOMISTS say Zimbabwe has the right fundamentals to consolidate growth spurred by a 29 percent increase in diaspora remittances in the first three months of the year.

Money sent back home by nationals living abroad has lifted the economies of several countries, including Zimbabwe.

With over US$380 million United States dollars having been sent home by Zimbabweans living abroad during the first quarter of this year, the trend is an indication of more inflows during the course of the year.

For economists, the trend is a reflection that Zimbabwe has relevant economic fundamentals in place that will also be sustained by the inflows.

“The remittances are a good indicator of how they can stimulate growth and ensure the inflows can perform an important role on overall economic growth,” said a Development Economist, Dr Prosper Chitambara.

“What is now needed is the right path to foster development and track that into alleviating poverty or changes on the economic front,” noted Economist, Dr Zack Murerwa.

In his 2022 Monetary Policy Statement, Reserve Bank of Zimbabwe Governor Dr John Mangudya noted that Zimbabwe registered its highest foreign currency receipts of nine comma seven billion United States Dollars last year.

The Governor underscored that diaspora remittances also accounted for a huge portion of the foreign currency inflows. – ZBC