Fin24

Zim slashes growth forecast to 4.3%

2012-10-30 11:04

Harare - Zimbabwe’s finance minister Tendai Biti again revised further downwards the 2012 economic growth figures to 4.3% in view of the new base information for 2011 GDP and some revisions in minerals output.
 
At the mid-term budgetary review minister Biti had revised the growth forecast to 5.6% from the initial projection of 9.4%.
 
The new revision is in line with IMF projections, which said the country’s economy would grow only 4% as a result of inadequate revenue inflows.
 
The IMF said despite the growth in productive sectors such as mining and agriculture, Zimbabwe’s economy continues to experience funding challenges that have resulted in government failing to sustain critical economic requirements.
 
Last year, the country's GDP was $8.865bn, representing a growth of 10.3%. GDP is expected to rise to $11.414bn this year, a growth of 4.3%. Biti however said that in 2013 the economy is projected to grow to $12.75bn, a growth of 7.4%.
 
Addressing a Government Works Programme workshop on Monday Biti also said the country should leverage the mining sector by putting resources into exploration; concluding the diamond act; pursue a mining model based on high value, high impact; reduce mining fees; rationalise taxation of mining; and ensure policy of beneficiation and value addition.
 
The minister also added that treasury will manage the Wage Bill by maintaining the freeze on recruitment; finalising the law on social dialogue; finalise legislation dealing with labour market reform; applying a cost of living adjustment that is inflation related; and pursuing real non monetary rewards.