HARARE – Zimbabwe’s economy demonstrated resilience in the third quarter of 2024, with the country’s Gross Domestic Product (GDP) growing by 2.37 percent compared to the previous quarter, official figures reveal.
The Zimbabwe National Statistics Agency (ZimStat) reported that the GDP for the quarter reached ZW$105.1 billion, building on the ZW$102.6 billion recorded in the prior quarter, when adjusted for constant prices.
ZimStat attributed the growth to strong performances across several key sectors. The electricity, gas, and steam sector saw a significant surge, growing by 22.2 percent, while accommodation and food services followed closely with a 19 percent increase. The water supply sector also performed well, recording a growth of 9.9 percent.
Wholesale and retail trade remained the largest contributors to GDP, accounting for 18.02 percent of the total value in the third quarter. Mining and quarrying, which has traditionally been a pillar of Zimbabwe’s economy, expanded by 6.4 percent, demonstrating its steady contribution to the national output. According to ZimStat, mining’s share rose to 15.15 percent, underlining its strategic importance, while manufacturing’s contribution slightly declined to 12.5 percent from the previous quarter.
While the economy showed signs of growth, Zimbabwe’s real GDP growth rate for 2024 is expected to slow to 2 percent, down from 5.3 percent in 2023. This decline is attributed to factors such as drought, low mineral prices, and macroeconomic challenges.
Economist Gladys Shumbambiri-Mutsopotsi commended the growth, particularly in the mining sector, noting its resilience in the face of global commodity price fluctuations and local operational challenges. She also highlighted the impressive growth in electricity generation, with the sector seeing a 22 percent rise.
“An over 22 percent growth in electricity generation is a game-changer, ensuring reliable power supply for industries and boosting investor confidence,” she said.
However, not all sectors performed equally well. Agriculture, fishing, and forestry’s contribution to GDP fell to 9.07 percent from 9.9 percent in the previous quarter. This decline was expected, as the third quarter is typically a period of preparation for the summer cropping season.
The construction sector also saw a decline, with its share dropping to 2.85 percent. In contrast, the tourism and hospitality industry showed signs of recovery, registering a 19 percent growth, driven by increased domestic and international travel. This revival points to the potential for further diversification of Zimbabwe’s economic base.
Shumbambiri-Mutsopotsi emphasized the importance of sustaining growth in high-performing sectors while addressing challenges in lagging industries. She suggested targeted investments in agriculture and construction to create a more balanced and inclusive growth trajectory.
“Targeted investments in agriculture and construction could balance the growth trajectory and ensure inclusivity,” she added.
ZimStat also noted that quarterly GDP figures are subject to revisions, with updated data and methodology refinements potentially leading to future adjustments.
As Zimbabwe nears the end of 2024, the latest figures offer cautious optimism. While growth in key sectors inspires confidence, the broader economy’s performance will hinge on addressing structural challenges and sustaining gains across various industries.
Source: The Herald
