THE Government’s shift from recovery to growth in the implementation of the National Development Strategy 1 has received buy in from economists with the focus on buttressing gains registered last year.
The government’s economic score sheet had full marks in almost every sector in 2021 as manifested by the 7.8 percent annual economic growth rate, which is so far the major highlight of the transformation of the economy under the Second Republic.
This was on the back of a cocktail of fiscal and monetary policy measures instituted by Treasury and Central Bank as guided by the National Development One, which is in its second year of implementation.
Economist, Dr Prosper Chitambara notes that the transition from a recovery mode to growth will shape government’s policy thrust in 2022 going forward.
“The economic sectors of mining and agriculture will be the key sources of growth in 2022 to attain the 5.5 percent economic growth as enshrined in the NDS 1 policy document. Government is thus expected to continue to support these sectors and others which will enhance the gains earned in 2021.”
Another economist, Happiness Zengeni, said government earned its stripes in containing offshoots of instability such as inflation and exchange rate fluctuations by controlling money supply growth, which will be a key impetus for economic growth this year.
“The Reserve Bank of Zimbabwe did a great job in reducing inflation from highs of 800 percent to around 60 percent and that can only be explained by the tight monetary policies that curtailed money supply growth and reducing flames of exchange rate fluctuations. We expect that this will be maintained in order to provide a framework for the economy to grow.”
The march towards Vision 2030 is undoubtedly in full force and a 56 percent jump in gold production in 2021, which has now reached a third of the 100 tonne target by 2023, is yet another affirmation of the success of the polices enshrined in the five-year National Development Strategy 1.