Zimbabwe’s 2024 growth forecast in line with regional forecast

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THE African Development Bank (AfDB)’s latest report confirms that Zimbabwe’s economy is within the range of 2024 regional growth forecast.

In its latest Macroeconomic Performance Outlook of the continent, the AfDB says the Southern African region’s growth will average 2,6 percent, reflecting subdued economic conditions in South Africa, the region’s largest economy.

In terms of its 2024 outlook for SADC economies, the bank is projecting Zimbabwe to register a 3,6 percent growth rate which is marginally above treasury’s projection of a 3,5 percent.

The AfDB prediction places Zimbabwe within average growth range of SADC economies as South Africa is anticipated to register a 1,1 percent growth rate.

Botswana’s growth rate has been pegged at 4,1 percent, Eswatini 4,9 percent, Malawi, 3,3 percent, Mozambique 5,0 percent, Namibia 2,6 percent, Zambia 4,7 percent and Mauritius 5,0 percent.

The continent’s development financier says tackling inflation, tight monetary policy systems coupled with fiscal consolidation and stable exchange rates will be key in facilitating a faster and more sustainable economic growth for SADC economies, including Zimbabwe.

Executive Dean in the Faculty of Commerce at Bindura University of Science Education, Dr Zachary Tambudzai says government and the private sector should focus on increased production to consolidate positive growth rates.

“The findings by the AfDB come at a time the region is grappling with the effects of the El Nino-induced drought. While there is resilience, it is really imperative to note that the predictions reveal a drop in all average growth rates from the previous year and this is a clear indication of how the drought and other macro-economic instabilities will have a bearing on overall growth. The fact that South Africa will also be having subdued conditions further dovetails into the AfDB predictions.

“However, hope has not been lost as what is just needed is to pay attention on other key economic drivers that have a potential to further scale up overall growth, taking into account interventions by the fiscal and monetary policy in ensuring stability. It is the need to be consistent that will further be crucial in ensuring that Zimbabwe realises positive growth rates,” he said.

The AfDB contends African economies must invest more in human capital and pursue a resource-based industrialisation agenda that facilitates beneficiation of raw commodities and guard against local as well as global shocks. – ZBC