Published: 22 July 2013

A local advisory firm has projected that Zimbabwe's economy is expected to slow down during the second half of the year due to political uncertainty and macro-economic risks confronting the economy.

In a quarterly equity market review for the period ending June, MMC Capital said the country's economic growth rate may miss the target partly triggered by political risks and lack of clarity on the indigenisation and empowerment regulations compelling foreign-owned companies to sell 51% stakes to locals.

MMC said despite this slowdown, year-end annual inflation was expected to be between 2.0% and 2.5% as local firms cash in on a weakening rand.

Turning to the fragile banking sector the advisory firm said deposits were expected to be below $44 billion on the back of reduced confidence.

Most of the deposits would remain short term in nature.
- newsday

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