In a low-case scenario, Zimbabwe’s economy will grow by only 1.7% in 2021, according to the World Bank Zimbabwe Economic Update (ZEU) released on Thursday.
ZEU revealed that slow domestic economic activity is expected to decrease tax revenues by an additional 0.5 percentage points of GDP compared to the baseline.
Public spending rises to support vulnerable populations, possibly increasing the fiscal deficit to unsustainable levels, according to the report.
“With limited external support, financing of the deficit could require financing by RBZ, again pushing inflation to triple-digit levels. A lower-than-expected recovery coupled with limited social assistance would exacerbate poverty,” reads the report.
Extreme poverty is poised to increase to 51% of the population or 8.1 million people in 2021.
The All Share Index was up 1.22% to 1,838.03 as the Top 10 Index gained 1.50% to 3,194.67.
Padenga gained the most with 12.93% to ZWL$34.3179. Hippo however lost 3.40% to ZWL$149.6790.
Ron Mutandagayi left ZB Financial Holdings (ZBFH) after 17 years of service, eight of which as the chief executive officer. ZB added 12.64% to ZWL$78.8500. NTS, Masimba and Zimplow were up 11.78%, 9.83% and 8.77% to settle at ZWL$11.6250, ZWL$38.7660 and ZWL$8.8763 respectively.
TSL eased 9.88% to ZWL$40.0000. FML followed, sliding 5.15% to ZWL$28.4545. FMP and Axia plunged 2.50% and 2.07% to ZWL$17.5008 and ZWL$21.9789 in that order.
Turnover improved to ZWL$1.46 billion after 54.69mln shares traded. FBC dominated market turnover at ZWL$1.34 billion followed by Delta at ZWL$38.14 million – Harare