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Fitch Solutions Says Zimbabwe Will Most Likely Record A Current Account Surplus This Year

Fitch Solutions Says Zimbabwe Will Most Likely Record A Current Account Surplus This Year

New York-headquartered global rating firm Fitch Solutions says Zimbabwe will most likely record a surplus for a “third consecutive current account surplus” this year for the first time since 2009.

A current account surplus means that a country has more exports and incoming payments than imports and outgoing payments to other countries. It is generally deemed a positive because the current account surplus adds to a country’s reserves.

The Sunday Mail reported citing Fitch Solutions’s recent report. Reads part of the report:

At Fitch Solutions, we anticipate that Zimbabwe will realise a current account surplus, although it will narrow from 3 percent of GDP in 2022 to 2,2 percent of GDP in 2023. This is testament to the fact that there is something positive happening in the country, and since the Minister of Finance (Professor Mthuli Ncube) came into office, prudent economic policies have been put in place. We, however, need to look at ways to further increase the gap in the positive direction, as it translates to more domestic production, which also means more jobs and a bigger local market.

Fitch Solutions believes the surplus would narrow owing to a combination of strong import demand in the run-up to this year’s harmonised elections and weak global commodity prices.

However, consumer spending is expected to remain strong which will keep import demand robust and lead to a narrower current account surplus.

Zimbabwe’s import bill is expected to reduce as average crude oil prices are projected to drop by 6.9 per cent over the course of 2023. The prices rose sharply in 2022 following Russia’s invasion of Ukraine on 24 February

Fuel accounted for 15.6 per cent of imports into Zimbabwe in 2021.

Fitch Solutions believes that the Zimbabwean export sector will be dealt a heavy blow by stagnant gold prices and receding nickel prices, resulting in less revenue.

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23 Comments

4 weeks ago

“ government uses cash-based accounting that only records receipts and payments thus ignoring any future liabilities such as the huge debt of US$16.36 billion or social needs.” pabatisiseyi ipapo , the rest of the article is🚮


Machiavelli 4 weeks ago

Ndipo panemwongo wenyaya yese.

democracy 4 weeks ago

article 🚮🚮🚮🚮

Mpilo 4 weeks ago

Are the Pcn interview results out???


pindula amusi makuwedzeredza here apa 4 weeks ago

This is testament to the fact that there is something positive happening in the country, and since the Minister of Finance (Professor Mthuli Ncube) came into office, prudent economic policies have been put in place


Gred 4 weeks ago

Zim owes approximately $17 million🇺🇲💵


4 weeks ago

Billion

Gred 4 weeks ago

Thts too much

Just saying 4 weeks ago

Mmmm that's the opposite of what I read the other day. The value of our imports was more than the value of our exports.

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Yes growth 4 weeks ago

My foot positive growth in debt of 17 billion US$. Crap report.


cde Chipopi 4 weeks ago

Don't worry guys Fitch Solutions and pindula are just joking. Happy New Year😁😁😁


,,,, Dott 4 weeks ago

. This is testament to the fact that there is something positive happening in the country, and since the Minister of Finance (Professor Mthuli Ncube) came into office, prudent economic policies have been put in place


ComedyHalfHour 4 weeks ago

😂 You think 😂 😂 😂 😂

,,,, dott 4 weeks ago

We are on the right direction 2 achieve word class economy by 2030


The Doctor 4 weeks ago

Chinonzi world class economy ndochii ichocho haaa ma zanu u are shallow minded bt i dont blame you ndozvazvinoita kuda kupembedza zvisipo munodhomoka

4 weeks ago

We will be when CCC wins the 2023 elections.
Zanupf... No I don't think so... sorry

g 4 weeks ago

no.nse.nse


nc 4 weeks ago

vanhu havana kurima gore rino hupenyu huchato wedzera kuoma


arabia 4 weeks ago

what number is Ronaldo wearing?


4 weeks ago

7

Tintin 4 weeks ago

will it have any positive impact on the common Zimbabwean?


5 4 weeks ago

Ndiyo patriotism here kurevera nyika yako nhema uchitsvaka kuti vanhu vakuvhotere ivo vachingoona vega kuti zvinhu zvakadhakwa,after all hazvidi fitch solutions kutiudza nezveupfumi hwedu by the way hanti nyika inovakwa nevene vayo,ko fitch solutions iri kutsvakei,yakapiwei ,nani?


nc 4 weeks ago

very true


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