Zimbabwe’s economic growth reviewed upwards to 7.8 percent

Prof. Mthuli Ncube

Finance and Economic Development Minister Professor Mthuli Ncube has reviewed upwards the country’s economic growth forecast to 7, 8 percent up from the 7, 4 percent growth target set in the 2021 budget.

Presenting the midterm budget review statement today, Prof Ncube said:

“Mr Speaker Sir, the domestic GDP growth for the year 2021 is projected to remain strong at 7, 8 percent, slightly above the 2021 National Budget growth forecast of 7, 4 percent. The strong rebound of the economy is anchored on better 2020/21 rainfall season, higher international mineral commodity prices, stable macroeconomic environment and Covid-19 pandemic response measures, including vaccination program.  Higher growth rates are projected in agriculture, electricity generation, accommodation and food services, as well as financial services.”

Prof Ncube said the economy is on the right track after inflation tumbled from 837, 5 percent in July 2020 to 106, 6 percent in June 2021 while the July year-on-year inflation stands at 56, 37 percent.

Other highlights 

The banking sector remained adequately capitalised, with aggregate core capital of ZW$64, 21 billion as at 31 March 2021, an increase of 20, 74%, from ZW$53, 8 billion as at 31 December 2020.

Merchandise exports are projected to increase by 4.2%, from US$4 931.9 million in 2020 to US$5 139, 8 million in 2021.

Between January and June 2021, the country received US$746.9 million in diaspora remittances compared to US$288.7 million received during the same period last year.