The Zimbabwean government suffered a great loss owing to the Covid pandemic. However, the Zimbabwean government is expecting a recovery in 2022. The Zimbabwean economy also enjoyed an economic revival, thanks to improved agricultural production and better capacity utilization. After facing a contraction for two years, the Zimbabwean government is here to enjoy a rebound. The gratitude for the economic rebound can be attributed to investment in public infrastructure and stabilized prices. As the impact of the Covid pandemic subsides, one is expecting better economic growth this year.
How Economic Recovery Of Zimbabwe Is Planned?
Zimbabwe is planning to walk towards the path of economic recovery by increasing the spending by double folds to fight the effect of the covid pandemic that resulted in economic contraction for two consecutive years. According to reports, the expenditure that is projected for 2022 is 927.3 billion. Most of the money will be used for improving the infrastructure and recapitalizing the national airline according to Mthuli Ncube, Finance Minister.
The government is not using any schemes like conducting Lottery Sambad and Teer Result for improving the economy of the country. In fact, the Zimbabwean government has decided to go for a more sustainable way of recovering the economy of the country. The increased spending by the government will help the country to experience a 5.5% expansion in Gross Domestic Product this year.
According to data provided by the International Monetary Fund, Zimbabwe experienced a contraction of 6.1% in 2019 and 5.3% in 2020. According to a budget announced by Ncube, the national budget of this year will help the country to build better resilience against sudden shocks like Covid-19.
World Bank Confirms The Strong Economic Growth Of Zimbabwe
The World Bank has recently confirmed the economic growth of Zimbabwe. Previously, the bank projected a growth of 3.9%, however, the Zimbabwean government performed better with 5.1% economic growth in 2021. The economic growth of Zimbabwe is driven by better rain in 2021 that resulted in better agricultural output. In addition to that, the capacity utilization of industry has improved and in addition to that, the improvement has improved in the public infrastructure sector.
According to the latest report published by World Bank’s Global Economic Prospects, the GDP of the country will remain positive at 4.3% this year and 4.2% in 2023. It is now known that Vision 2030 of Zimbabwe envisioned the country as an upper-middle-income economy. The implementation of the Transitional Stabilization Programme started the Vision 2030 which was launched back in October 2018. While working on that path, the Zimbabwean government managed to restore both the internal and external macro-economic stability, along with the restoration of the domestic currency.
The report by the World Bank on Zimbabwe Economic Update has indicated that the economic growth in 2022 will further strengthen the Zimbabwean economy. With the deployment of vaccination that has only intensified along with the passage of time and further, the implementation of National Development Strategy 1 has started showing the results. According to Mukami Kariuki has further stated that the recovery of the economy will further depend upon the performance of the regional economy and the impact of the pandemic, of course. The current good news is that the economy of Zimbabwe is expected to perform better than its neighbors. While Zimbabwe is enjoying a growth rate of 5%, the other Sub-Saharan African countries are experiencing a growth rate of 2.8%. The economic growth in Zimbabwe has ensured that the Zimbabwean government gains its fair share of compliments.
What Ensured Economic Revival In Zimbabwe?
The economic revival of Zimbabwe can be attributed to improved agricultural output last year, better mining and electricity production along with improved construction and better investment in improving the infrastructure of the country. Along with that, the good and swift response of the government for fighting against Covid-19 is also to be praised for ensuring economic revival in the country. The government ensured that firms and households are provided with the support required to give them a cushion for surviving the pandemic. All the reports and data published by both national and international entities have only proved that yes, we can expect economic growth in Zimbabwe this year. The country is already walking the path of economic recovery and one will be able to see the fruits of the same soon.