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Harare - Zimbabwe has revised downwards its economic growth prospects for the year 2013, with the gross domestic product growth rate now forecast at 3.4% from the targeted 5%.
Presenting the Mid-year Fiscal Policy Statement on Thursday, Finance Minister Tendai Biti blamed the bleak prospects on the forthcoming elections as well as “predatory politics”.
Biti said the projected economic growth decline is also reflected by slowdown in growth of aggregate demand, which is now projected to grow by 7% in 2013, down from the original forecast of 12%.
Government revenues are however projected to rise slightly above the original target of US$3.844bn to $3.906bn. Expenditure will still be maintained at $3.84bn.
Biti said agricultural growth had also been revised downwards from 6.4% to 5.4% in 2013.
He said this was on account of anticipated declines in maize, groundnuts and cotton output owing to the poor 2012/13 rainy season.
“Similarly, projected mining output has fallen sharply, to give a revised growth of 5.3% from 17.1%,” he said.
Biti added that falling international mineral prices against rising production costs as well as perennial challenges related to lack of long-term financing have had a profound effect on gold and diamond mining houses.
Commenting on investment prospects, Biti said foreign direct investment was mainly constrained by perceived risks associated with the elections as well as the indigenisation and economic empowerment regulations, all of which have seen investors adopting a cautionary “wait and see attitude”.
- Fin24
Presenting the Mid-year Fiscal Policy Statement on Thursday, Finance Minister Tendai Biti blamed the bleak prospects on the forthcoming elections as well as “predatory politics”.
Biti said the projected economic growth decline is also reflected by slowdown in growth of aggregate demand, which is now projected to grow by 7% in 2013, down from the original forecast of 12%.
Government revenues are however projected to rise slightly above the original target of US$3.844bn to $3.906bn. Expenditure will still be maintained at $3.84bn.
Biti said agricultural growth had also been revised downwards from 6.4% to 5.4% in 2013.
He said this was on account of anticipated declines in maize, groundnuts and cotton output owing to the poor 2012/13 rainy season.
“Similarly, projected mining output has fallen sharply, to give a revised growth of 5.3% from 17.1%,” he said.
Biti added that falling international mineral prices against rising production costs as well as perennial challenges related to lack of long-term financing have had a profound effect on gold and diamond mining houses.
Commenting on investment prospects, Biti said foreign direct investment was mainly constrained by perceived risks associated with the elections as well as the indigenisation and economic empowerment regulations, all of which have seen investors adopting a cautionary “wait and see attitude”.
- Fin24
