Informal sector to claim higher stake of GDP

Informal sector to claim higher stake of GDP
Published: 09 May 2014
Zimbabwe's informal sector's contribution to the country's Gross Domestic Product is expected to increase in the outlook period, according to estimates by the Zimbabwe National Statistics Agency (ZimStats).

Speaking at a "Dissemination of the compendium of statistical concepts and definitions' workshop this morning Zimstats director-general Mutasa Dzinotizei said the 2014 Gross Domestic Product (GDP) is expected to be 13 billion with the informal sector contributing up to 20 percent of that figure.

"This year's GDP is expected to be 13 billion and we expect the informal sector to contribute 20 percent of that figure," he said

Dzinotizei said it should be a priority for Government to devise ways to strategically increase employment in the formal sector because the situation shows a flaw that needs to be amended.

"Formal sector jobs are decreasing and we need to judge how we can increase the capacity of the formal economy to generate jobs. The fact that employment in the formal sector is increasing is a symptom that there is something wrong in the formal sector. Policy makers have to seriously take this issue into account," he said.

On employment, the ZimStats director-general said there are fine lines between a person being classified as employed and unemployed.

He said individuals involved in informal trade are considered as employed due to their contribution to the GDP.

"When we measure employment and unemployment we take into account the productivity contributions made towards the GDP. The informal sector is considered into our calculations because they contribute towards the GDP and thus we consider them as employed.

"There are many fine lines in-between employment and unemployment and we encourage people to engage with the ZimStats office to get clarification. The people who are in the informal sector generate income and productivity," he said.

He said that according to the Pices Survey done every five years that measures the size and contribution of the informal sector in the country conducted in 2011showed the informal sector contributed a significant 10 percent of the GDP.

"The Pisces Survey that we conduct every 5 years shows the size and contribution of the informal sector. The one we conducted in 2011 showed that the informal sector contributed 10 percent of the GDP," he said.
- BH24


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