Zimbabwe projects strong economic growth in 2022

HARARE – Despite the outbreak of Covid-19, which continues to threaten economic activity, the Zimbabwe Government is optimistic the year ahead will still register strong growth.

The country is currently under level 4 lockdown, to curb the spread of Covid-19, a situation that could derail economic activity and growth.

Disruptions in supply chains, and the channelling of funds towards combating Covid-19, would naturally slow down implementation of budgeted projects.

While it is not known how the pandemic will pan out in 2022, the disruptions in 2021, could still have an impact on the coming year.

The Ministry of Finance and Economic Development is however not deterred and has forecast the economy to grow by 5,4 percent in 2022.

This will follow an estimated growth of 7,4 percent in 2021.

Presenting the Budget Strategy Paper for 2022 to Cabinet, Finance and Economic Development Minister Mthuli Ncube, reportedly said the 5,4 percent growth in 2022, is “anchored on growth in the mining, manufacturing and electricity generation sectors, among others”.

Government revenue is expected to improve from 16.4 percent ($390,8 billion) of the Gross Domestic Product (GDP) in 2021 to 17.8 percent ($533.2 billion) in 2022.

Spending is however expected to be ramped up as expenditure is projected to increase to 19.4 percent ($579.1 billion) of the GDP from the 18.2 percent ($421.6 billion) in 2021.

The 2022 National Budget is expected to prioritise macroeconomic stability as well as creation of a “conducive environment for business investment and to improve the living standards of the majority”.

Minister Mthuli is expected to present the 2021 Mid-Year Fiscal Policy to Parliament this Thursday. – Herald