HARARE – Zimbabwe’s economy is expected to contract another 18% this year due to the Covid-19 pandemic, which has left many businesses around the world in limbo.
The latest projection was prepared by the vice-president of the MDC Alliance, Tendai Biti, former finance minister under the government of national unity (GNU) between 2009 and 2013.
“…I see a massive trip of this economy by a factor of minus 12% to minus 18% in 2021. This is in line with IMF projections,” he said.
Biti has criticized President Emmerson Mnangagwa’s government for its anti-majority policies, which have left a number of Zimbabweans in abject poverty.
“It is disturbing that the International Monetary Fund (IMF) gave billions of dollars to 83 countries in 2019, but Zimbabwe missed the mark.
“For example, some countries like Uganda received $499 million, but Zimbabwe missed out because of our pariah status, and so the fate of Zimbabwe’s economy is inseparable from politics,” he said. he declared.
The latest forecast will be bad news for the current finance minister, Mthuli Ncube, who has spoken out on surpluses and economic growth.
Minister Mthuli Ncube said last November when presenting the 2021 state budget to Parliament that the country’s economy is expected to grow by 7.4% in 2021 after forecasting a contraction of 4.1% in 2020.
“On the supply side, this growth will be driven by a strong recovery in agriculture, mining, electricity, construction, transport and communications, as well as finance and insurance,” the minister said. .
It remains to be seen how the economy will evolve, but the signs point to a negative outlook through the end of the year.