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Friday, July 12, 2024

World Bank data points to Zim economic resilience

Story by Stanley James, Business Editor

RECENT data from the World Bank has confirmed Zimbabwe’s economic resilience and potential driven by a growth projection of more than three per cent this year.

In January this year, the Bretton Woods institution projected Zimbabwe’s economy to grow by 3,5 percent from 5,5 per cent last year.

In its Global Economic Prospects Report released Monday, the institution has marginally revised Zimbabwe’s growth expectations to 3,3 per cent.

The new forecast, which is above the bank’s global average growth rate of 2,7 percent, has been attributed to the economy’s ability to withstand shocks.

The World Bank notes that interventions to counter or guard against the effects of drought including softening international mineral prices have seen the economy maintain a positive growth trajectory.

It reveals that weakening economic activities and reduced demand for commodities in Asian economies will have spillover effects to developing countries which include Zimbabwe.

According to the report, growth in Sub-Saharan Africa is projected to slow down to 3,2 per cent this year as external shocks, inflationary pressures, higher borrowing costs and increased food insecurity lead to limited production.

The World Bank’s predictions are in line with National Development Strategy One aspirations for the economy to register positive yearly growth rates. 

Treasury is expecting the economy to register a 3,5 per cent growth rate this year driven by mining, construction, manufacturing and agriculture.

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