• Mon. Apr 15th, 2024

Uncertainty clouds Zimbabwe’s outlook – Report

ByETimes

Sep 13, 2023

By ETimes

HARARE – The Zimbabwe economic outlook remains uncertain on expected policy continuity, which will be challenging amid a struggling economy, the latest report shows.

This comes after President Emmerson Mnangagwa’s credibility after his election victory was questioned by Western and African observers.

Now he has appointed the new cabinet ministers, with some assuming their previous positions and others switching ministries.

“A generalized uncertainty clouds the outlook, with political economy undertones still dominating market themes. Resultantly, the market still presents a ‘wait-and-see’ atmosphere,” Old Mutual Investment Group (OMIG) latest monthly report.

OMIG states that the monetary policy area continues to be the centre of macroeconomic risk.  

“Prevailing conditions present limited policy manoeuvrability beyond the multi-currency framework, thereby sustaining the status quo. From a low base, the medium to long-term outlook still presents considerable upside.”

Despite the recent exchange rate fluctuations, Reserve Bank of Zimbabwe governor John Mangudya recently said the country’s domestic economic outlook remains robust, with projected growth for 2023 upgraded to 5.3% from the initial forecast of 3.8%.

Authorities hinted at the maintenance of a tight monetary and fiscal policy stance in order to maintain the economic gains that have been achieved so far.

By ETimes

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