IMF predicts Zimbabwe’s economy to grow by 3,5 percent this year

By Business Editor
THE International Monetary Fund (IMF) is predicting Zimbabwe’s economy to grow by three comma five percent this year.
In a report after concluding its 2022 Article IV consultations with Zimbabwe, the Bretton Woods institution revealed the modest economic prediction which is however below the local target of a 5,5 percent growth.
It states that recovery from the Covid-19 continued as evidenced by reopening of industries.
The International Monetary Fund (IMF) modest prediction is also centred on the agricultural performances, growth in mining, industrial capacity utilisation, food security, social support measures and infrastructure development.
High double digit inflation figures and widening parallel market foreign exchange rate are being cited by the IMF as major threats to economic growth this year.
The IMF states that Zimbabwe’s current account surplus for this year is expected to decline, reflecting a rise in imports and slowdown in diaspora remittances.
Executive Directors for the multilateral lender commended government on efforts to solve macro-economic imbalances while prioritising social support.
It, however, warned that failure to address food security might affect efforts to eradicate high poverty levels.
Despite not offering any form of financial support to the economy in the form of loans, the Second Republic has continued to engage the institution.
However, last year Zimbabwe received 961 million United States dollars in IMF Special Drawing Rights.
Under the article four consultations, the IMF held meetings with the Minister of Finance and Economic Development Professor Mthuli Ncube, Reserve Bank of Zimbabwe Governor Dr John Mangudya, the private sector, government officials and the academia.