Harare - Zimbabwe's real gross domestic product (GDP) growth in 2012 is projected to slow to 5%, according to the International Monetary Fund (IMF).
In its latest annual review on Zimbabwe, the IMF said the slowdown in GDP growth is due to the impact of adverse weather conditions on agriculture, erratic electricity supply, and tight liquidity conditions.
The IMF added that growth should moderate over the medium term to average about 4%, although energy supply constraints and weak competitiveness may pose a challenge to achieving these rates.
Meanwhile, Zimbabwe's current account deficit is projected to narrow to 20.5% of GDP in 2012, as a spike in imports in 2011 is reversed and exports continue to expand.
- Fin24
*Malcom Sharara is Fin24's correspondent in Zimbabwe.
*Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.
In its latest annual review on Zimbabwe, the IMF said the slowdown in GDP growth is due to the impact of adverse weather conditions on agriculture, erratic electricity supply, and tight liquidity conditions.
The IMF added that growth should moderate over the medium term to average about 4%, although energy supply constraints and weak competitiveness may pose a challenge to achieving these rates.
Meanwhile, Zimbabwe's current account deficit is projected to narrow to 20.5% of GDP in 2012, as a spike in imports in 2011 is reversed and exports continue to expand.
- Fin24
*Malcom Sharara is Fin24's correspondent in Zimbabwe.
*Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.