Share

Zimbabwe's growth will remain flat - World Bank

Harare - Zimbabwe's economy will grow at 1.5% this year and consumer prices will remain deflationary as global and local constraints limit a recovery, the World Bank says.

The global lender said growth this year would be slower than the government's estimate of 2.7%, while inflation in the same year would average -1.7%.

World Bank senior economist for Zimbabwe, Johannes Herderschee, said during a presentation of the bank's outlook on Zimbabwe: "We expect deflation to continue this year".

The Southern African country is experiencing crippling power cuts, blamed for keeping away potential investors in an economy struggling to emerge from a steep recession between 1999-2008 that saw the economy contract by nearly half.

"The fundamentals for recovery are still strong but the headwinds are increasing. These headwinds, as well as the brunt of economic corrections, both domestic and global, will likely be most deeply felt by the poor," the World Bank said.

Zimbabwe however expects gold output to rise by 28% this year, while the government also plans to cut the royalty fee on bullion by 40%, among a host of government efforts to boost growth.

Finance Minister Patrick Chinamasa in December blamed deflation on weak consumer demand and an influx of cheaper goods from South Africa.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.03
-0.7%
Rand - Pound
24.01
-0.5%
Rand - Euro
20.54
-0.3%
Rand - Aus dollar
12.36
-0.0%
Rand - Yen
0.13
-0.6%
Platinum
900.50
+0.4%
Palladium
1,002.25
+0.1%
Gold
2,209.77
+0.7%
Silver
24.53
-0.5%
Brent Crude
86.09
-0.2%
Top 40
68,080
+0.6%
All Share
74,278
+0.5%
Resource 10
56,967
+2.4%
Industrial 25
103,572
+0.3%
Financial 15
16,456
-0.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders