Zimbabwe sees economic growth of 4,5% in 2018

Zimbabwe sees economic growth of 4,5% in 2018
Published: 28 May 2018
Zimbabwe's economy could grow by up to 4,5 percent this year, driven by an expected growth in agriculture and mining, Parliament's Budget Office has said.

President Emmerson Mnangagwa, who came to power in November after a de facto military coup that removed long-time leader Robert Mugabe, has promised economic reforms to attract foreign investment and restore ties with international lenders so the country can access fresh funding.

"The Zimbabwean economy is projected to grow by 4,5 percent in 2018 buoyed by an expected growth in agriculture of 10,7 percent on the backdrop of good rains, electricity (28,5 percent) and mining (6,1 percent).

"The bullish economic outlook is also anchored on policy and economic reforms spearhead by the new dispensation," the 2018 first quarter budget performance and outlook report says.

This comes as the African Development Bank (AfDB), in its African Economic Outlook report projects the Zimbabwean economy to grow by 1 percent in 2018 and 1,2 percent in 2019 dampened by political changes.

The World Bank also projected 0,9 percent in 2018 and 0,2 percent in 2019.

The AfDB growth forecast factors in that the economy could be weighed down by the elections which will take place in the third quarter of 2018.

Elections, besides putting pressure on expenditure may dampen investment thus affecting growth with a number of investors expected to adopt a wait and see attitude.

"It is therefore important that in addition to economic reforms being undertaken, the holding of a credible and peaceful election in 2018 is critical to strengthening cooperation of global partners and unlocking the much needed investment.

"Anything short of that can lead to costly disruptions to the economy and threaten the growth targets," Parliament's Budget Office said.
- dailynews
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