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Lower growth forecast for Zimbabwe as drought ravages crops
11 Jul 2024 at 03:04hrs | Views
Zimbabwe has adjusted its economic growth forecast downward for 2024 due to severe drought conditions caused by the El Niño weather phenomenon, impacting crop yields across the country.
Finance Minister Mthuli Ncube stated that economic growth is now expected to reach 2%, down from a previous forecast of 3.5%. The drought has significantly affected agriculture, with neighbouring countries like Zambia and Malawi also declaring states of disaster.
Despite the current challenges, Ncube remains optimistic about a rebound in economic growth, projecting a recovery to above 5% in 2025. Zimbabwe's maize production for the upcoming season is expected to decline sharply by 72%, prompting plans to import 1.4 million metric tonnes of grain to mitigate food shortages.
In response to the crisis, Zimbabwe has received approximately US$32 million in drought insurance from an African Union agency and has appealed for international assistance to address food insecurity. Ncube is set to present a midterm budget review later this month to outline further economic measures in light of the ongoing challenges.
Finance Minister Mthuli Ncube stated that economic growth is now expected to reach 2%, down from a previous forecast of 3.5%. The drought has significantly affected agriculture, with neighbouring countries like Zambia and Malawi also declaring states of disaster.
Despite the current challenges, Ncube remains optimistic about a rebound in economic growth, projecting a recovery to above 5% in 2025. Zimbabwe's maize production for the upcoming season is expected to decline sharply by 72%, prompting plans to import 1.4 million metric tonnes of grain to mitigate food shortages.
In response to the crisis, Zimbabwe has received approximately US$32 million in drought insurance from an African Union agency and has appealed for international assistance to address food insecurity. Ncube is set to present a midterm budget review later this month to outline further economic measures in light of the ongoing challenges.
Source - zimlive
