The World Bank (WB) forecasts Zimbabwe’s economy to grow by 2.9% in 2021 after an estimated -10% contraction in 2020 amid the COVID-19 pandemic.
The financial institution also forecasts Sub-Saharan Africa region to rebound moderately to 2.7% in 2021.
“While the recovery in private consumption and investment is forecast to be slower than previously envisioned, export growth is expected to accelerate gradually, in line with the rebound in activity among major trading partners,” the World Bank says.
“Output in the Sub-Saharan Africa region contracted by an estimated 3.7% in 2020, as the COVID-19 pandemic and associated lockdowns disrupted economic activity.”
Contrary to the WB, Finance Minister Professor Mthuli Ncube in this year’s National Budget expects the economy to rebound by 7.4% in 2021 from consecutive 2-year downturn.
“Government’s response aimed at ensuring strong economic recovery building on the milestones from the Transitional Stabilisation Programme (TSP) and targeting additional support measures to cushion vulnerable households,” Ncube said.
“150 000 formal jobs are expected to be recovered after having been lost due to COVID-19 pandemic.”
Ncube also said, “Prices are expected to remain stable as fiscal and monetary measures complement in containing inflation.”
The Zimbabwean Finance Minister, contrary to WB also estimates the 2020 economy to contract by -4.1% in 2020, reflecting weak demand due to necessary lockdown.
Ncube says the lockdown suppressed output, productivity and capacity utilisation.
“COVID-19 pandemic hit an economy already dealing with devastating impacts of climatic shocks of drought, Cyclone Idai and Cyclone Kenneth,” he said.
“Mining, manufacturing, tourism, construction, distribution and other service sectors faced the full negative impact of containment measures.”
