Zimbabwe's Economy Projected To Grow By 7.4%

Zimbabwe’s economy is projected to grow by 7.4% in 2021 on the back of an anticipated rebound in the agriculture sector as well as in mining, electricity and construction among other things.

This was said by Finance and Economic Development Minister Mthuli Ncube while making his 2021 national budget presentation this Thursday. He said:

… economic growth is expected to rebound in 2021 from the consecutive two-year slump to record 7.4%.

From the supply side, this growth will be driven by a strong recovery in agriculture, mining, electricity, construction, transport and communication as well as finance and insurance.

Ncube also projected formal employment to grow with about 150 000 formal jobs in 2021 as the country emerges from the COVID-19 pandemic. Ncube added:

In line with economic rebound projected in 2021, formal employment is projected to grow with about 150 000 formal jobs are expected to be recovered after having been lost due to COVID-19 pandemic.

Similarly, incomes are also expected to rise, with per GNI per capita expected to increase to US$1 835 from current levels of US$1 156.

Beyond 2021, growth is expected to level off to around 5% annually. The projected growth trajectory assumes reduced severity of COVID-19 pandemic as vaccine coverage expands and therapies improve.

The attendant macroeconomic stability, improved supply of electricity, favourable agricultural season and effective policy implementation will also assist the growth and development agenda.