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*Mthuli Ncube Cuts Growth Target To 4.6%*

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Finance and Economic Development Minister, Mthuli Ncube, on Friday, revised 2022 gross domestic product (GDP) growth targets to 4.6% from 5.5%.

Presenting the 2022 mid-term economic review statement and supplementary budget, Ncube said the downward revision of the growth targets arose from supply chain disruptions globally, a volatile currency and high inflation and low agricultural output. He said:

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> Economic performance during the first half of 2022 reaffirms the positive growth trajectory as projected in the 2022 national budget.

> GDP growth in 2022 is, however, now projected to slow down to 4.6% from the 5.5% initially projected.

> The downward revision is mainly arising from a reduced output from the 2021/22 agricultural season, compounded by continued depreciation of the local currency and rising inflation.

> The impact of geopolitical developments is also weighing down on the growth potential of the economy.

Ncube also revised downwards growth projections for the manufacturing sector to 3.6% from 5.5%. He said:

> Despite the increase in manufacturing capacity utilisation to 56.5% from 47% in 2021 and increased availability of domestically produced goods in the supermarkets, growth of the sector is now expected to slow down to 3.6% in 2022 compared to an initial projection of 5.5%.

> The downgrade is mainly due to the high cost of production, attributable to rising in prices of imported raw materials and a poor agricultural season.

Ncube said the mining sector was expected to grow at 9.5% in 2022 up from the initially projected 8% following increased output in gold, platinum group metals, chrome, nickel, diamonds and coal.

More: Zimbabwe Independent

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