By Stanley James, Business Editor
THE World Bank says Zimbabwe’s economy is on course to achieve a positive growth rate of 3,7 percent after revising estimates for this year due to global economic shocks.
Revised projections are however, still below treasury’s forecast of 5,5 percent which is subject to review at the mid-term budget next month.
The Bretton Woods Institution initially predicted the economy to grow by 4,3 percent this year.
However, it notes that geo-political tensions, global economic shocks, rising food, oil and commodity prices have led to a slash in growth targets for most economies, including Zimbabwe.
Despite the revised growth projections, the World Bank’s new estimates show that Zimbabwe is still outpacing several regional economies.
The World Bank notes that Zimbabwe, like any other global economy, has not been spared from the rise in inflation rates that have seen global central banks tightening monetary policies and raising interest rates to curb soaring prices.
The multilateral lender notes that global economic outlook is expected to drop to 2,9 percent this year from 5,7 percent in 2021.
Treasury and the central bank are, however, on record saying despite global shocks, Zimbabwe’s economy has the right fundamentals in place towards achieving an upper middle in-come society by 2030 anchored on strong productive sectors.