Govt admits recovery faltering


Government yesterday admitted Zimbabwe’s recovery is slowing and officially downgraded its economic growth forecast for the year from around 7,7% to 5,4%, a level still higher than what the International Monetary Fund (IMF) expects — just 2%.
Emerging from over a decade of inexorable economic downturn, the country had envisaged foreign investment-led recovery after the formation of an inclusive unity government in February last year. But President Robert Mugabe in Parliament yesterday said this has not happened, and donors too have not come forth. Zimbabwe’s economy is estimated to have recovered 5,7% last year, above an initially target of 4,5%, driven by agriculture.
Although the IMF predicts the country’s real gross domestic product will grind to zero% next year, President Mugabe’s government still hopes that the economy will grow beyond 5,4%.
The multilateral lender sees fiscal and financial vulnerabilities aggravating and weighing on recovery and inflation pressures mounting and touching a level above 5% in annualised terms by December.