It is no secret that the Zimbabwean economy is struggling at the moment. In fact, that is putting it mildly, the economy is in the toilet is a more apt description. Now, it seems even our optimistic Finance Minister admits it. He has even put a number to it all.
According to the Pre-Budgetary Statement the Finance Minister has made the following predictions:
- The economy will shrink by 6.5%, for whatever reason he says the economy will grow by 4.5% in 2020
- The shrinkage will be mostly a result of a contraction in Agricultural output which he put at 16.3%. The drought has really hit the country hard and that is understandable
- Another cause of the shrinkage will be due to a fall in mining output with negative growth of 12.3%. Now, this is puzzling, it’s not like drought has that much of an impact on mining. With all that illegal artisanal mining that is destroying the environment and the machete-wielding gangs you would be forgiven for thinking we were getting something for our troubles. Turns out we are not.
- Power and energy will see negative growth of 19.8% this year and will only see modest growth of 8.7% in 2020. It means even the Finance Minister does not think load shedding will be a thing of the past by then.
- In fact, all sectors of the economy will see contraction this year. We mean all.
2020 Will be a good year we are told
2020 will be a great year and the economy will grow because:
- Improved rainfall season which should enhance agriculture
- production and electricity generation with trickle-down effects to
- all other sectors;
- Recovery in aggregate demand;
- Improved foreign currency availability; and
- Improved macro-fiscal stability and business confidence.
Stay Ahead of the Game!
Get exclusive updates on prices, deals, and rates directly to your WhatsApp! Don't miss out on the best offers from Zimpricecheck.com.
Get Your Loan in 5 Minutes!
Quick, Easy, and Secure Financial Solutions
Apply Now!No hidden fees • Competitive rates • Instant approval
Leave A Comment