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Zimbabwe’s Economy Grew 6.3% In 2021, New IMF Report Says

Zimbabwe’s Economy Grew 6.3% In 2021, New IMF Report Says

The International Monetary Fund (IMF) says Zimbabwe’s economy grew 6.3% in 2021 on the back of a bumper maize harvest, strong performance in mining, and buoyant construction.

Last year, the IMF had projected GDP growth at 5.1%, but on Thursday the Fund said that recovery had been faster than expected.

Zimbabwe’s economy contracted by 11.7 per cent between 2019 and 2020 due to Cyclone Idai, drought, and the COVID-19 pandemic as well policy missteps in 2019, according to the IMF.

In a statement after its latest routine Article IV consultation with Zimbabwe, the IMF executive board said:

Real GDP rose by 6.3% in 2021 reflecting a bumper maize harvest, strong pickup in mining, and buoyant construction.

A tighter policy stance since mid-2020 (relative to 2019) has contributed to lowering inflation to 60.7 per cent (y/y) at the end-2021.

Fiscal policy was tightened in 2020‑21, reflecting increased revenues and lowered spending.

The current account balance turned into a surplus during 2019-21, reflecting favourable metal prices, lower imports, and a surge in remittances.

The IMF however, noted that inflation has remained in double digits and wide parallel foreign exchange market premia have continued.

The fund also observed that poverty has risen and about a third of the population is at risk of food insecurity.

Zimbabwe’s economic recovery is expected to continue in 2022, with growth projected at about 3.5 per cent and 3 per cent over the medium term.

The IMF commended Zimbabwe for its response to the COVID-19 pandemic when it first emerged in 2019, saying this helped to reduce the impact of the pandemic. The IMF said:

The authorities’ swift response to the pandemic, including through containment measures and economic and social support, helped contain its adverse impact.

Recommendations by the IMF to Zimbabwean authorities

  • implement the necessary reforms that would foster higher, more inclusive growth and pave the way for reengagement with the international community.
  • enhance revenue mobilization, including broadening the tax base and improving tax administration and compliance.
  • accelerating reforms of state-owned enterprises and enhancing fiscal controls will be critical to limit fiscal risks.
  • use the SDR allocation prudently and transparently.
  • enhance debt management and transparency.
  • increase the operational independence of the central bank, discontinue its quasi-fiscal operations, and improve its coordination with the fiscal authorities
  • prioritise structural reforms to improve the business climate and build resilience to climate change.

More: IMF

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Machiavelli 1 month ago

Growth without equity is meaningless. More and more people are joining the very poor while the connected are getting stinking rich.

Zimbabwe is in the classic case whereby if one has their head in the freezer and their feet in the fire, on average they are doing okay

Boss Kumbie 1 month ago

real GDP has increased and growth had been recorded but muindustry vanhu vachiri kungopihwa nzungu and also real GDP can increase in the expense of forgoing incrementals in civil servants salaries 😁 old pumura

rasta 2 months ago

we should have improved more if corruption rate was low

zimboy 2 months ago

well not bad after ol...we're ol hoping for a better Zimbabwe

gidza 2 months ago

it shows munyika mukubiwa where is that money going ? Growth my ASS!!!

Tsombori 2 months ago

IMF inenge yaktodhakwawo iyi, growth ipi ipapa nxaa

Anonymous 2 months ago

@Tsombori economy pachitariswa GDP vanotarisa economic production ndosaka uchinzwa vachitaura zve maize bumber harvest. Mukadzi anogona kushata pameso asi magadziko ainawo. Zanu inobhaiza asi inowanawo 1 out of ten plus last season yakabetserekawo nemvura yakanaya. Kana pe poverty mapaona apo then vote for💛💛 yellow nation


Chapwititi Kestombela 2 months ago

SDR is being abused already 🤣🤣🤣🤣🤣🤣🤣. God bress orodhi Pumura

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