Opinion / Columnist
Zimbabwe's high economic growth rate actually shows a struggling economy
5 hrs ago | Views
The government of Zimbabwe has consistently paraded the positive economic growth rate experienced over the past few years as a sign of a robust and thriving economy.
To bolster its narrative, President Emmerson Mnangagwa's administration has frequently touted these figures as evidence of an economic miracle.
Yet, beneath the surface of these ostensibly impressive statistics lies a reality starkly different from what the government wants Zimbabweans to believe.
Before delving deeper, it is critical to understand what an economic growth rate signifies.
The economic growth rate measures the percentage increase in a country's Gross Domestic Product (GDP) from one year to the next.
GDP, in simple terms, is the total monetary value of all goods and services produced within a country in a given period.
This growth rate is calculated by comparing the GDP of the current year with that of the previous year.
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For example, if a country had a GDP of $100 last year and it grew to $150 this year, the growth rate would be calculated as x 100, which equals 50%.
On the surface, a high growth rate may seem synonymous with economic success, but this metric alone does not tell the full story.
Let us consider two hypothetical countries to illustrate this point.
If Country A had a GDP of $10 last year and grew to $20 this year, its growth rate would be a remarkable 100%.
In contrast, Country B, with a GDP of $100 last year, might have grown to $150 this year, resulting in a lower growth rate of 50%.
While Country A appears to have a higher growth rate, its actual economic size remains far smaller than Country B.
This is precisely the phenomenon we are witnessing with Zimbabwe's economic growth rate.
Zimbabwe has indeed recorded impressive growth figures over the past few years.
In 2021, the economy grew by 6.3%, and in 2022, it expanded by 5.8%.
The World Bank projects a growth rate of 6.2% for 2025.
These numbers, on paper, seem to suggest an economy on the rise.
However, a closer examination of Zimbabwe's GDP tells a different story.
In 2022, Zimbabwe's GDP was estimated at $20 billion.
Compare this to South Africa's GDP, which stood at a staggering $406 billion in the same year, despite its much lower growth rate of around 1.2% for 2024.
Similarly, Nigeria, with an estimated GDP of $477 billion in 2022, recorded a growth rate of approximately 2.5% in 2024.
What these figures reveal is that while Zimbabwe's growth rate is higher than those of South Africa and Nigeria, its economy is significantly smaller.
A high growth rate often reflects the phenomenon of a smaller economy experiencing proportional growth from a relatively low base.
For instance, if Zimbabwe's GDP grows from $20 billion to $22 billion, the growth rate is 10%, yet the absolute increase is only $2 billion.
In contrast, a country like South Africa, even with a modest 2% growth rate, would see an absolute increase of $8 billion, which dwarfs Zimbabwe's growth in real terms.
This disparity underscores a crucial reality that the Mnangagwa administration has conveniently ignored in its narrative.
While growth rates can be a useful metric, they must be contextualized within the actual size of the economy.
Zimbabwe's high growth rates are not an indication of robust economic performance but rather a reflection of an economy starting from a very low base.
The government's fixation on growth rates is not accidental.
It serves as a smokescreen to obscure the harsh realities on the ground.
While officials trumpet economic growth, they remain conspicuously silent on the issues that matter most to ordinary Zimbabweans.
For instance, the poverty rate in Zimbabwe remains alarmingly high.
According to the World Bank, nearly 40% of Zimbabweans live in extreme poverty, defined as surviving on less than $1.90 a day.
The broader poverty rate, which includes those living on less than $5.50 a day, is even higher, encompassing a significant majority of the population.
Unemployment, too, is a critical issue that the government prefers to sidestep.
Independent estimates suggest that over 90% of Zimbabweans are informally employed, struggling to eke out a living through precarious means such as street vending and subsistence farming.
These are the statistics that matter to Zimbabweans-figures that speak directly to their daily struggles and lived experiences.
The government's narrative also conveniently ignores the plight of those living below the poverty datum line.
Recent estimates place the poverty datum line for a family of five in Zimbabwe at around $600 per month.
However, most Zimbabweans earn far less than this, leaving them unable to afford basic necessities such as food, healthcare, and education.
These are the realities that a high economic growth rate cannot mask.
So why does the Mnangagwa administration place such emphasis on growth rates?
The answer lies in its desire to project an image of competence and progress, especially in the face of widespread poverty, unemployment, and social discontent.
By focusing on growth rates, the government seeks to create the illusion of an economy on the mend, hoping to distract citizens from the harsh realities of their daily lives.
Yet this strategy is unlikely to succeed.
Zimbabweans are acutely aware of the disconnect between the government's rosy statistics and their own lived experiences.
They do not measure economic performance in terms of GDP growth rates but in terms of tangible improvements in their quality of life.
Access to affordable healthcare, education, and housing; the availability of stable and well-paying jobs; and the ability to provide for their families-these are the metrics that truly matter.
While the Mnangagwa administration might celebrate the World Bank's projection of a 6.2% growth rate for 2025, Zimbabweans are more concerned with the rates of inflation, which have eroded their purchasing power, and the skyrocketing costs of basic goods and services.
They are concerned with the crumbling infrastructure, the erratic power supply, and the lack of clean drinking water in many communities.
In conclusion, Zimbabwe's high economic growth rate, while superficially impressive, is not an indication of a thriving economy.
Rather, it reflects the struggles of a small economy trying to gain traction from a low base.
By focusing on these growth rates, the government seeks to distract from the real issues facing the nation-poverty, unemployment, and declining living standards.
Zimbabweans deserve better than misleading statistics.
They deserve a government that prioritizes their welfare and works towards meaningful and sustainable economic development.
Until then, the narrative of economic success will remain just that-a narrative, divorced from the realities of life in Zimbabwe.
© Tendai Ruben Mbofana is a social justice advocate and writer. Please feel free to WhatsApp or Call: +263715667700 | +263782283975, or email: mbofana.tendairuben73@gmail.com, or visit website: https://mbofanatendairuben.news.blog/
To bolster its narrative, President Emmerson Mnangagwa's administration has frequently touted these figures as evidence of an economic miracle.
Yet, beneath the surface of these ostensibly impressive statistics lies a reality starkly different from what the government wants Zimbabweans to believe.
Before delving deeper, it is critical to understand what an economic growth rate signifies.
The economic growth rate measures the percentage increase in a country's Gross Domestic Product (GDP) from one year to the next.
GDP, in simple terms, is the total monetary value of all goods and services produced within a country in a given period.
This growth rate is calculated by comparing the GDP of the current year with that of the previous year.
To directly receive articles from Tendai Ruben Mbofana, please join his WhatsApp Channel on: https://whatsapp.com/channel/0029VaqprWCIyPtRnKpkHe08
For example, if a country had a GDP of $100 last year and it grew to $150 this year, the growth rate would be calculated as x 100, which equals 50%.
On the surface, a high growth rate may seem synonymous with economic success, but this metric alone does not tell the full story.
Let us consider two hypothetical countries to illustrate this point.
If Country A had a GDP of $10 last year and grew to $20 this year, its growth rate would be a remarkable 100%.
In contrast, Country B, with a GDP of $100 last year, might have grown to $150 this year, resulting in a lower growth rate of 50%.
While Country A appears to have a higher growth rate, its actual economic size remains far smaller than Country B.
This is precisely the phenomenon we are witnessing with Zimbabwe's economic growth rate.
Zimbabwe has indeed recorded impressive growth figures over the past few years.
In 2021, the economy grew by 6.3%, and in 2022, it expanded by 5.8%.
The World Bank projects a growth rate of 6.2% for 2025.
These numbers, on paper, seem to suggest an economy on the rise.
However, a closer examination of Zimbabwe's GDP tells a different story.
In 2022, Zimbabwe's GDP was estimated at $20 billion.
Compare this to South Africa's GDP, which stood at a staggering $406 billion in the same year, despite its much lower growth rate of around 1.2% for 2024.
Similarly, Nigeria, with an estimated GDP of $477 billion in 2022, recorded a growth rate of approximately 2.5% in 2024.
What these figures reveal is that while Zimbabwe's growth rate is higher than those of South Africa and Nigeria, its economy is significantly smaller.
A high growth rate often reflects the phenomenon of a smaller economy experiencing proportional growth from a relatively low base.
For instance, if Zimbabwe's GDP grows from $20 billion to $22 billion, the growth rate is 10%, yet the absolute increase is only $2 billion.
In contrast, a country like South Africa, even with a modest 2% growth rate, would see an absolute increase of $8 billion, which dwarfs Zimbabwe's growth in real terms.
This disparity underscores a crucial reality that the Mnangagwa administration has conveniently ignored in its narrative.
While growth rates can be a useful metric, they must be contextualized within the actual size of the economy.
Zimbabwe's high growth rates are not an indication of robust economic performance but rather a reflection of an economy starting from a very low base.
The government's fixation on growth rates is not accidental.
It serves as a smokescreen to obscure the harsh realities on the ground.
While officials trumpet economic growth, they remain conspicuously silent on the issues that matter most to ordinary Zimbabweans.
For instance, the poverty rate in Zimbabwe remains alarmingly high.
According to the World Bank, nearly 40% of Zimbabweans live in extreme poverty, defined as surviving on less than $1.90 a day.
The broader poverty rate, which includes those living on less than $5.50 a day, is even higher, encompassing a significant majority of the population.
Unemployment, too, is a critical issue that the government prefers to sidestep.
Independent estimates suggest that over 90% of Zimbabweans are informally employed, struggling to eke out a living through precarious means such as street vending and subsistence farming.
These are the statistics that matter to Zimbabweans-figures that speak directly to their daily struggles and lived experiences.
The government's narrative also conveniently ignores the plight of those living below the poverty datum line.
Recent estimates place the poverty datum line for a family of five in Zimbabwe at around $600 per month.
However, most Zimbabweans earn far less than this, leaving them unable to afford basic necessities such as food, healthcare, and education.
These are the realities that a high economic growth rate cannot mask.
So why does the Mnangagwa administration place such emphasis on growth rates?
The answer lies in its desire to project an image of competence and progress, especially in the face of widespread poverty, unemployment, and social discontent.
By focusing on growth rates, the government seeks to create the illusion of an economy on the mend, hoping to distract citizens from the harsh realities of their daily lives.
Yet this strategy is unlikely to succeed.
Zimbabweans are acutely aware of the disconnect between the government's rosy statistics and their own lived experiences.
They do not measure economic performance in terms of GDP growth rates but in terms of tangible improvements in their quality of life.
Access to affordable healthcare, education, and housing; the availability of stable and well-paying jobs; and the ability to provide for their families-these are the metrics that truly matter.
While the Mnangagwa administration might celebrate the World Bank's projection of a 6.2% growth rate for 2025, Zimbabweans are more concerned with the rates of inflation, which have eroded their purchasing power, and the skyrocketing costs of basic goods and services.
They are concerned with the crumbling infrastructure, the erratic power supply, and the lack of clean drinking water in many communities.
In conclusion, Zimbabwe's high economic growth rate, while superficially impressive, is not an indication of a thriving economy.
Rather, it reflects the struggles of a small economy trying to gain traction from a low base.
By focusing on these growth rates, the government seeks to distract from the real issues facing the nation-poverty, unemployment, and declining living standards.
Zimbabweans deserve better than misleading statistics.
They deserve a government that prioritizes their welfare and works towards meaningful and sustainable economic development.
Until then, the narrative of economic success will remain just that-a narrative, divorced from the realities of life in Zimbabwe.
© Tendai Ruben Mbofana is a social justice advocate and writer. Please feel free to WhatsApp or Call: +263715667700 | +263782283975, or email: mbofana.tendairuben73@gmail.com, or visit website: https://mbofanatendairuben.news.blog/
Source - Tendai Ruben Mbofana
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