Global inflation to affect growth projections for developing countries

By Davison Vandira

ECONOMIC analysts have bemoaned global inflation movements that have affected the energy and food sectors while also threatening economic projections for developing countries like Zimbabwe.

According to a recent report by the World Bank, global inflation has become a negative phenomenon as it will suppress economic growth.

Central banks across the globe in trying to tame this inflation, have adopted contractionary fiscal and monetary policies which have a knock-off effect to economic development projections set at the beginning of the year.

The latest global developments have cast aspersions on Zimbabwe’s ability to meet its targeted annual growth of 5% percent as the country is a net importer of energy, food and technology.

“The year 2022 has been characterised by high inflation from developed countries and countries like Zimbabwe will bear most of the negative effects as they will import inflation from somewhere hence the targeted growth projections for this year might be missed,” said a Development Economist, Mr Paison Tazvivinga.

The effects of geopolitical tensions and the COVID-19 pandemic have resulted in extreme movement of inflation worldwide and this has impacted negatively to the recovery process that Zimbabwe has been having over the past three years. It is imperative to introduce policy instruments that neutralise the raging inflation, noted Kudakwashe Mugova, Economic Analyst.

Zimbabwean monetary and fiscal authorities have been implementing inflation insulating measures to ensure macro-economic stability.