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Zimbabwe GDP jumps 6,2% to $56 billion

by Staff reporter
14 Jul 2023 at 07:43hrs | Views
ZIMBABWE's gross domestic product (GDP) grew by 6,2 percent to clock $56,1 billion during the first quarter of the year 2023 when compared to $52,8 billion recorded in the same period last year.

In a bold reflection of the positive impact of the Government's policy reforms initiated since the coming of the Second Republic in 2017, the country has managed to surpass the projected GDP growth of 5,5 percent to a record 6,2 percent annual growth.

GDP refers to the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country's economic health.

The jump in GDP growth rates is consistent with the country's tenaciously developmental trajectory being championed under President Mnangagwa's leadership, which has seen the country withstanding macroeconomic hurdles to score significant milestones in different sectors of the economy.

Between 2018 and 2022, for instance, the New Dispensation rolled out a total of 6 869 development projects across the country of which 4 984 have been completed while 1 885 were ongoing as of December 2022.

The inclusive development approach has amplified Zimbabwe's resolute determination to uplift the livelihoods of ordinary people through unlocking wide enterprise development and massive job opportunities across sectors.

According to the Zimbabwe National Statistics Agency (ZimStat), the major growth drivers were agriculture, mining, manufacturing, wholesale and retail, finance, and insurance sectors, which continue to make huge strides in line with the National Development Strategy (NDS1) guidelines.

Presenting the 2023 first quarter GDP report, ZimStat director general, Mr Taguma Mahonde, said the estimates provide indications of economic activity, based on developments during the first three months of the year.

"The 2023 first quarter recorded a year-on-year growth rate of 6,2 percent when compared with the first quarter of 2022," said Mr Mahonde.

"During the first quarter of 2023, the top five contributing industries in terms of value added were wholesale and retail trade which contributed 20,1 percent, mining and quarrying (14 percent), agriculture ( 12 percent), finance and insurance (9,6 percent) and manufacturing with 8,9 percent."

On a year-on-year basis, he said the industries that recorded significant growth in the period under review were information and communication technology, which recorded 30,2 percent growth, mining and quarrying, 18,9 percent, finance and insurance, 16,2 percent, transport and storage, 16 percent, wholesale and retail trade 10,9 percent and agriculture, fishing and forestry 4,7 percent.

He said other industries that contributed more to the 2023 first quarter GDP include manufacturing, electricity, gas, steam and air conditioning supply, water supply, sewerage, waste management and remediation activities, construction, and accommodation and food service activities.

However, Mr Mahonde said the first quarter of 2023 recorded a decline of 11,1 percent in value-added produce from the fourth quarter of 2022.

"The slowdown in the first quarter was mainly on account of a decline in electricity production, decline in mineral output, depressed demand for goods and services, and decline in manufacturing activities," he said.

Mr Magonde noted that on a quarter-to-quarter basis, industries that declined in the first quarter of 2023 were manufacturing, which dropped by 40 percent, accommodation, and food services reduced by 23,2 percent, electricity (21,6 percent), transport and storage (13,5 percent), information and communication (12,2 percent) and wholesale and retail trade with 11,6 percent.

Source - The Chronicle
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