Business / Economy
Zimbabwe poverty tag could only be broken by 2027 says Biti
30 Aug 2012 at 05:31hrs | Views
Finance Minister Tendai Biti yesterday said Zimbabwe could only break the chains of poverty by 2027 at the current low economic growth rates, following a revision of initial 2012 economic growth targets.
Biti told delegates attending the ongoing High Level Economic forum in the resort town that following a cut in gross domestic product growth rates to 5,4% from 9,3%, Zimbabwe, currently with a per capita income of $320, would require 15 more years to reach a per capita income of $600.
He, however, said with an economic growth rate of 15%, it would take seven years for the country to shed off its poverty tag.
"If we continue at growth rates of 5% and 5,4%, we will reach per capita income of $600 in 2027. But with a growth rate of 15%, this can be done by 2019," Biti said.
The minister said a position paper would be crafted from the dialogue in a bid to solve the current economic problems bedeviling the country.
He blamed "self-induced policy distortions" for slowing down initially projected economic growth targets.
"I hope by the end of this forum we will be able to come up with at least 15 things we can do about this economy and at least scenarios (that can build this economy).
"Findings of this forum will be presented to principals of this government, Cabinet and Parliament," he said.
Biti said outdated economic models anchored on accumulation and exportation of raw commodities at the expense of value addition was also stifling growth and development.
Biti told delegates attending the ongoing High Level Economic forum in the resort town that following a cut in gross domestic product growth rates to 5,4% from 9,3%, Zimbabwe, currently with a per capita income of $320, would require 15 more years to reach a per capita income of $600.
He, however, said with an economic growth rate of 15%, it would take seven years for the country to shed off its poverty tag.
"If we continue at growth rates of 5% and 5,4%, we will reach per capita income of $600 in 2027. But with a growth rate of 15%, this can be done by 2019," Biti said.
He blamed "self-induced policy distortions" for slowing down initially projected economic growth targets.
"I hope by the end of this forum we will be able to come up with at least 15 things we can do about this economy and at least scenarios (that can build this economy).
"Findings of this forum will be presented to principals of this government, Cabinet and Parliament," he said.
Biti said outdated economic models anchored on accumulation and exportation of raw commodities at the expense of value addition was also stifling growth and development.
Source - newsday
