Zimbabwe’s finance minister said the country is targeting small deficits and a steep fall in inflation over the next few years, as it attempts to boost investor confidence.
President Emmerson Mnangagwa, who assumed office in 2017, has struggled to revive the economy that had been devastated by hyperinflation and irregular policymaking under his predecessor, Robert Mugabe.
However, following two years of contraction in 2019 and 2020, Zimbabwe’s economy is forecast to rebound by 7.8% in 2021, and according to Finance Minister Mthuli Ncube, the recovery can continue.
During a parliamentary budget speech, Ncube forecast 5.5% economic growth in 2022, and added that the aim was for a deficit of 1.5% of GDP next year and 1.7% of GDP in 2023, Reuters reports.
He went on to add that fiscal policy would be cautious and the government wouldn’t resort to printing money to finance the deficit, as was the case under Mugabe’s rule.
Moreover, annual inflation is predicted to decline from 94.6% this year to 32.6% in 2011 and 17.5% in 2023, according to a presentation by the finance ministry.
Up to now, President Mnangagwa has not been able to repair relations with Western governments, which have accused Zimbabwe’s government of rights abuses and rough treatment of the opposition.
The country’s economic difficulties are shown in its currency, which was reintroduced in 2019, 10 years after Zimbabwe dollarized to ease hyperinflation.
The Zimbabwean dollar trades at substantial discounts on the black market, and a recent weak spell hindered plans to limit inflation.
Furthermore, data published on Thursday revealed consumer inflation increased to 58.4% year-on-year in November, from October’s reading of 54.5%.
Zimbabwe Dollar falls to record low ahead of currency announcement
The Zimbabwean currency has fallen to another all-time low as residents sought refuge in the stability of the US dollar amid speculation the central bank is on the verge of making an announcement regarding the future of the local currency.
posted on 03.04.2024
RBZ urges govt incentives on diaspora investments
Zimbabwe’s central bank, the Reserve Bank of Zimbabwe (RBZ), called on the government on Monday to provide fiscal and non-fiscal incentives to diaspora investments due to their massive contribution to total foreign currency inflows in the country.
posted on 05.12.2023
Zimbabwe Dollar falls to record low ahead of currency announcement
The Zimbabwean currency has fallen to another all-time low as residents sought refuge in the stability of the US dollar amid speculation the central bank is on the verge of making an announcement regarding the future of the local currency.
posted on 03.04.2024
RBZ urges govt incentives on diaspora investments
Zimbabwe’s central bank, the Reserve Bank of Zimbabwe (RBZ), called on the government on Monday to provide fiscal and non-fiscal incentives to diaspora investments due to their massive contribution to total foreign currency inflows in the country.
posted on 05.12.2023
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