• Sat. Apr 27th, 2024

ARS sees Zim growth slowing to 1.5% in 2023

ByEconomic Times

Feb 2, 2023

By ETimes

Zimbabwe’s economic growth will slow to 1.5% this year, the local think tank Akribos Research Services (ARS) said in its latest investment markets playbook 2022 review and 2023 outlook.

The Treasury expects the country’s GDP growth to ease to 3.8% in 2023 from 4.0% in 2022 before rebounding in 2024.

Above-average rainfall, a reliable electricity supply, ongoing usage of the multicurrency, favorable global commodity prices, and strict monetary and fiscal policies are all credited with the recovery.

“Looking ahead we expect populist policies to take centre stage in this election year and the slowdown in economic growth in leading global economies like China, the US, and the Eurozone to have a ripple effect that will exert more pressure on the Zimbabwe dollar,” ARS said.

“ARS estimates real GDP to further pull back to 1.5% in 2023 from 2.0% in 2022.”

In contrast, the International Monetary Fund expects Zimbabwe’s GDP to grow by 3.0% in 2022, then decline to 2.8% in 2023, then slightly increase to 3.0% in 2027.

The IMF stated that there is still a lot of uncertainty and that the economic outlook would depend on how important policies are implemented and how external shocks develop.

Also, Fitch Solutions expects Zimbabwe’s GDP growth to accelerate to 2.4% in 2023 from 2.0% in 2022 – Harare

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