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Zimbabwe GDP to grow 3.7% in 2019, World Bank

by Staff reporter
09 Jan 2019 at 18:19hrs | Views
The World Bank has projected that Zimbabwe's Gross Domestic Product (GDP) will grow by 3.7% this year compared to the 3.8% it projected in June 2018.

This is higher than the 3.1% GDP growth projection pronounced in the 2019 National Budget by Finance and Economic Development Minister Mthuli Ncube, in November last year.

According to the World Bank's Global Economic Prospects report titled "Darkening Skies", which was released yesterday, the Zimbabwean economy will also grow by 4.0% next year, as well as in 2021.

Zimbabwe's GDP growth rate exceeds the projected growth estimate for Sub-Saharan Africa, which has been put at 3.4%.

Zimbabwe is facing growing economic woes, which have seen the escalation of fuel shortages, sharp increases in basic commodities prices and low foreign direct investment (FDI) inflows over the past years. Money supply and inflation growth have increased pressure on local currency.

Zimbabwe companies have asked government review to the fixed exchange rate, which is causing price distortions. Government has responded by announcing a foreign currency allocation committee to facilitate the optimum distribution of the scarce resource.

Source - online