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Thursday, July 18, 2024

World bank hints on modest growth of Zim economy

Story by Stanley James, Business Editor

DESPITE local and external shocks, the World Bank is predicting Zimbabwe’s economy to register modest growth ahead of its second assessment of the economy in March.

The World Bank will in March relook into the overall performance of Zimbabwe’s economy, taking into account global shocks, local challenges, climatic conditions, geopolitical tensions and a weakening global economic outlook.

In an earlier forecast, the bank predicted Zimbabwe’s economy to register a 3,6 percent growth this year, and the financial institution’s Country Manager for Zimbabwe, Ms. Marjorie Mpundu has hinted on a modest growth for the country.

‘‘As World Bank, we remain committed to the Government of Zimbabwe, we continue to be a key partner however we will need to relook at the projections taking into account the global shocks, climate change, geopolitical tensions and the impact of the COVID- 19,” she said.

Expectations are high that a good harvest might result in the initial forecast being revised upwards.

She added, ‘‘If the good rains continue then there are expectations of a bumper harvest that will translate into good prospects for the economy so basically that will have a huge difference and a bumper harvest spells good times for the Zimbabwean economy but let’s wait and see how it goes.’’

A World Bank latest report states that Zimbabwe has not been spared from global economic developments like inflationary pressures, tight financial conditions, high-interest rates, geopolitical tensions and new waves of the COVID-19 pandemic.

However, treasury is expecting the country’s economy to grow by 3,8 percent this year on the back of favourable global commodity prices, a good agricultural season, tight monetary and fiscal policy, among others.

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