IMF revises Zim growth estimate

Online Desk |  2 years ago | business


The International Monetary Fund (IMF) has upgraded its estimate for economic growth in Zimbabwe this year from 5,1 percent to 6 percent, very close to the Government estimate of 7,8 percent, based on increased productive investment, and has given a thumbs up to the continued programme of almost eliminating budget deficits and controlling money supply to curb inflation.

The estimate came in preliminary findings by an IMF staff team led by Mr Dhaneshwar Ghura, Mission Chief for Zimbabwe, after concluding Article IV Mission to Zimbabwe through virtual meetings from October 25 to November 16.

Mr Ghura held discussions with Finance and Economic Development Minister Professor Mthuli Ncube, Secretary for Finance George Guvamatanga, Reserve Bank of Zimbabwe Governor John Mangudya and senior Government and RBZ officials, Members of Parliament, representatives of the private sector and civil society and Zimbabwe’s development partners.

The IMF praised the Zimbabwean administration on being able to tackle budget deficits and reserve money growth as a way to contain inflationary pressures.

The IMF official said the envisaged GDP growth reflected a bumper agricultural output, increased mining and energy production, buoyant construction and manufacturing activity, and increased infrastructure development.

The IMF in June this year had said Zimbabwe is on a path to economic recovery with a growth forecast of 6 percent expected this year largely due to a bumper harvest of maize.

The World Bank also shares similar strong growth sentiment about Zimbabwe and said earlier economic growth this year will be led by recovery of agriculture as rains normalise, businesses adjust to limitations caused by the Covid-19 pandemic, and inflation slows.