Zimbabwe’s economy predicted to grow by 7.8% this year

Zimbabwe’s economy is predicted to grow this year by 7.8%, which is slightly more than had been earlier forecast.

Reviewing the government’s budget, Finance Minister Mthuli Ncube attributed the growth to, among other things, good rainfall which led to a strong agricultural season.

Rising global commodity prices have also been a factor.

Year-on-year inflation has dipped, from a staggering 837.5% in July 2020 to 56% 12 months later.

While the government appears to be winning its war against inflation, this figure remains higher than the single-digit rate President Emmerson Mnangagwa inherited when he ousted his predecessor Robert Mugabe in 2017 with the help of the military.

Analysts say the government is moving in the right direction, but most Zimbabweans have not seen an improvement in their living standards.

The Consumer Council of Zimbabwe says an average family needs $470 (£335) a month to survive.

The average public school teacher earns just under $300 a month at the official exchange rate.

News on Alafarika studies , consultancy, events, and editorials.

Similar Topics