Mthuli Ncube says Zimbabwe’s economy to grow by 5.4%

Finance Minister Mthuli Ncube says the country’s economy is projected to grow by 5.4 percent next year.

Presenting the 2022 national budget in parliament yesterday, Ncube said the 2022 growth projection is, however, subject to risks relating to the future path of the pandemic and its impact on key sectors of the economy.

“Domestic GDP growth for 2021 is estimated to remain strong at 7.8%, mainly on account of the good 2020/21 agriculture season, higher international mineral commodity prices, stabilising macroeconomic environment and better management of the COVID-19 pandemic.

“In 2022, the economy is projected to grow by 5.5%, underpinned by higher output in mining, manufacturing, agriculture, construction, as well as accommodation and food services (tourism) sector. .”

Ncube said annual inflation was on a downward path during the greater part of the year to 54.5% as at October 2021 compared to 471.3% recorded during the same period last year, underpinned by a tight fiscal and monetary stance.

“However, the parallel market premiums and market indiscipline always presents challenges on efforts of containing inflation. the Central Bank is implementing a three- pronged policy approach of conservative monetary targeting framework, supported by prudent management of the exchange rate through the auction system, as well as measures to maintain and sustain the current financial sector stability.”