COVID-19: Economy to register negative growth

By ZBC Reporter
ECONOMIC analysts have called on authorities to start working on modalities to soften the impact of the Covid-19 pandemic, as the impending 21-day lockdown by South Africa is likely to affect the country which relies mostly on imports.
Economic analysts’ concerns are emanating from South Africa’s impending 21-day lockdown as a way of combating the deadly Covid-19.
Economist, Luxon Zembe says the move by South Africa requires local authorities to reciprocate by putting mechanisms like tax breaks for industries and individuals to mitigate against challenges that may arise as Zimbabwe imports a lot of goods from that market.
“The move by SA authorities is likely to cascade to our local economy albeit on a negative way hence it is prudent that we deal with these perceived headwinds whilst we have got time to do so,” he said.
Another economic analyst, Mr Batanai Matsika noted that exports, especially for mining commodities are likely to take a knock putting constraints on foreign currency receipts, calling for some form of cushioning to stimulate productivity in the sector.
“Zimbabwean authorities should move swiftly to try and come up with ways to stimulate productivity to cushion the country from Covid-19 effects,” he said.
The calls by analysts are taking a cue from other economies around the globe who are strategising to keep their economies afloat in the face of the pandemic.