Economy to slow by 3.5% amid heavy public debt: Wo...

Economy to slow by 3.5% amid heavy public debt: World Bank

Nyashadzashe Ndoro

Zimbabwe’s economy is projected to slow to 3.5% in 2024 coupled by the rise in public debt due to accumulating external arrears and legacy debt, the World Bank has noted.

“The economy is projected to slow to 3.5% in 2024, as agricultural output is expected to suffer from depressed global growth especially from China, predicted erratic and below- average rainfall caused by the El Niño weather pattern. The weaker global demand for minerals will reduce the contribution of the mining sector to economic growth,” World Bank noted in its Zimbabwean economic update.

The international bank, however, established that Zimbabwe’s economy saw a “strong rebound” post Covid-19.

“Zimbabwe’s rapid recovery post-pandemic meant that it was a strong performer in SSA and growing faster than regional peers

“Fiscal deficits have been contained due to successful mobilization of tax revenues and moderate expenditure increases,” the World Bank said in its calculations, which are based on the Zimbabwe National Statistics Agency and the Reserve Bank of Zimbabwe.

But the “public debt continues to rise, by accumulating external arrears and legacy debt”.

Zimbabwe is also likely to face a severe drought. The Cabinet on Tuesday noted that by this last year, farmers had planted 465 707 hectares of summer crops. But with the late rains, just 95 156ha had been planted by December 10.

“As at 10 December 2023 and due to late commencement of the rainfall season, about 95 156 hectares had been planted, compared to 465 707 hectares at the same time last year,” Information Minister, Jenfan Muswere said.