Harare: Zimbabwe’s economy is projected to grow by 3.5 percent in 2022 and three percent over the medium term but the threat of Covid-19, droughts and other structural constraints could dampen the growth prospects, the International Monetary Fund said on Friday.
In an assessment following Article IV consultations with Zimbabwean authorities, the IMF said real gross domestic product was forecast to slow down to 3.5 percent this year, down from the 6.3 percent recorded in 2021 on the back of the bumper maize harvest during the 2020/21 farming season as well as strong pick-up in mining and buoyant construction.
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“The output recovery that resumed in 2021 is expected to continue, albeit at a slower pace, with growth projected at about 3.5 percent in 2022 and 3 percent over the medium term in line with Zimbabwe’s growth potential,” the Bretton Woods institution said.
It warned that the effects of the Covid-19 pandemic and protracted drought “have compounded existing structural constraints and would lead to scarring on the economic outlook”.
Noting that substantial challenges remain, including extreme poverty and long-standing structural constraints, the fund urged the Zimbabwean authorities to implement the necessary economic and political reforms that would foster higher, more inclusive growth and pave the way for re-engagement with the international community.
APA