• Busting Uber myths

    The ehailing firm is constantly trying, succeeding - and sometimes failing, says Ian Mann.

  • Trapped in a democracy

    The very people elected to bring benefits to all are undermining SA, says Solly Moeng.

  • Marikana spectre

    Five years after the bloody massacre calls for justice are growing louder, says Terry Bell.


Zim sees 8.9% growth in 2013

Oct 12 2012 11:20

Harare - Zimbabwe’s economy is projected to grow 8.9% next year if the political environment remains stable and the government lives within its expenditure targets, the finance ministry said on Friday in a pre-budget statement.

Uncertainty over the date and conduct of elections due within the next year is casting a shadow over the economy given Zimbabwe’s recent history of violent and disputed polls.

Finance Minister Tendai Biti is due to present the budget to parliament on November 15.

In July, Biti, a senior member of Prime Minister Morgan Tsvangirai’s Movement for Democratic Change (MDC), slashed his 2012 growth forecast to 5.6% from 9.4%t due to a poor harvest and a lack of donor funding and investment.

The finance ministry statement said inflation, which has remained in single digits since Zimbabwe adopted foreign currencies in 2009, would average 5% next year.

Consumer inflation slowed to 3.63% in August from 3.94% previously.

The government projects that revenues should grow to $3.8bn next year from an expected $3.4bn in 2012 as authorities crack down on corporate tax defaulters.

After a decade of steep economic decline and hyperinflation, Zimbabwe’s economy has been growing since the formation in early 2009 of a unity government between Tsvangirai and veteran President Robert Mugabe.

In its annual review of the Zimbabwean economy, the International Monetary Fund said growth should moderate over the medium-term to average about 4%, although poor power supply and tight liquidity conditions could pose problems. 

The southern African country also carries a huge debt burden that is preventing it from securing new aid. Its total external debt was estimated at $10.7bn, or 113.5% of GDP, at the end of 2011. Of this, more than half is in arrears.

*Follow Fin24 on Twitter and Facebook




Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're Talking About...

Savings Month

It's never too late to start saving. Visit our special issue and add your voice.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The proposal to nationalise SARB will

Previous results · Suggest a vote