By Stanley James
A Sub-Saharan Africa Regional Economic Outlook Report has maintained Zimbabwe’s economic growth targets with local authorities being implored to guard against global shocks threatening current gains.
The report compiled by the International Monetary Fund (IMF), notes that developing economies including Zimbabwe, are not being spared from global economic shocks arising from Russia’s special military operation in Ukraine.
This has seen most developing economies grappling with rising commodity prices that have led to inflationary pressures due to surging global oil and food prices.
The report reveals that most global economies will experience an average growth rate of three comma eight percent.
However, in terms of its analysis, the report has maintained Zimbabwe’s economic growth forecast for the year at 3.5 percent, despite resurfacing inflationary pressures.
Economic experts believe addressing current economic challenges to boost spending, preserving the value of the local currency and focusing on increased social services development as well as poverty alleviation are key to further growth.
“The growth should translate into development that is looking at increased spending by the majority and curbing high poverty levels,” said Development Economist, Dr Zack Murerwa.
“The need to preserve the value of the Zimbabwe dollar should be taken as a major priority so that the economy has its own monetary policy while sustaining competitive exports,” added Industrialist- Dr Abel Mubango.
Some of the key features in the report include the need by central banks to tighten money supply systems and interest rates on the back of inflationary pressures, inclusion of increased private sector led economic activity and fiscal policies that protect the vulnerable against rising food and energy prices.
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