The International Monetary Fund on Tuesday kept its forecast for Zimbabwe’s 2021 economic growth unchanged at 3.5%. Previously, IMF staff said despite a pickup in the services sector, the southern African nation’s real GDP growth slows in 2022 to 3.5% and about 3% thereafter in line with its current potential.
However, President Emmerson Mnangagwa maintains that the country’s economy will grow by 5.5% in his keynote address at the 42nd Independence Day commemorations in Bulawayo.
“In 2021, the economy grew by 7.4%, while in 2022 it is projected to grow by 5.5%, leveraging on the peaceful environment, increased production and productivity; infrastructural development, a buoyant mining sector as well as a recovering tourism and hospitality industry,” he said.
He said the agricultural sector has had mixed fortunes due to the impact of mid-season drought and recurrent tropical cyclones in some provinces.
“However, our hopes for an adequate harvest remain high.”
While some still talk of bumper harvest for the 2021/22 farming season, critics say agriculture output will be lower than prior year given the impact of adverse weather conditions.
Accordingly, the IMF’s latest World Economic Outlook revealed that growth in sub-Saharan Africa will be 3.8% in 2022. Niger is poised to record the biggest jump in GDP growth at 6.9% in 2022 followed by South Sudan at 6.5% in 2022.
South Africa GDP is poised to be at 1.9% in 2022.
Meanwhile, the Zimbabwe Stock Exchange starts the week on a positive note as the mainstream All Share Index appreciated by 3.11% to close at 22,838.15 points. Its year to date gain currently stands at 111.03%.
Market breadth closed positive as CFI led 30 gainers against 8 losers topped by ZHL at the end of today’s session.
The Top 10 Index climbed 2.18% to 15,017.30 points although a 2.43% loss was recorded in CBZ to finish at $129.98.
CFI topped the gainer’s chart, appreciating by 20% to end at $186.00. FML advanced by 18.33% to $26.03. Banking counter NMB added 16.51% to $24.23. As a result, the Medium Cap Index gained the most, rising 5.98% to 38,438.96 points.
ZHL led laggards, declining by 6.73% to $4.19. Hotelier African Sun followed, slumping 2.8% to $11.17. Hospitality group RTG fell 2.22% to $7.33. Banking counter FBC closed at $54.07, going down by 1.45%.
The Small Cap Index improved by 4.85% to 505,350.82 points. GB Holdings and NTS added 17.71% and 17.51% to settle at $2.20 and $10.00 respectively.
Market turnover declined 41.85% to $336.52 million. Transactions in the shares of Econet topped the activity chart with 988 100 shares valued at $ 202.6 million.
Investors’ wealth surged by 3.27% to $2.9 trillion.
On ETFs, Datvest Modified Consumer was up 0.36% to close at $1.8433 while the Morgan & Co Multi Sector climbed 12.57% to end at $18.6448. Accordingly, the Old Mutual ZSE Top-10 gained 18.31% to finish at $ 11.0153 – Harare