22 January 2018
   
Government orders blood price reduction
- One day’s supply left of key blood group
Kasukuwere begs ED for forgiveness: official
Chinamasa to divert wages to devolution
Dump Mugabe regalia, Zanu PF official
Mugabe exploited my illiteracy: Mujuru
Engineers group to expose fake degrees
Grandpa, 83, says minor pestered him for sex
MORE NEWS
Gemmology center in Mutare soon
NRZ loss as gold miners damage rail line
MORE BUSINESS
Unpaid Mr ugly reports sponsors to ZRP
Zim author releases new book in USA
MORE SHOWBIZ
Anger as Dembare approach City player
Cricket: ICC clears Zimbabwe's Vitori
MORE SPORTS
Mnangagwa’s ‘New’ Zim merits support
Zhuwao: kleptocracy and EDiots in Davos
MORE OPINION
 
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
MORE COLUMNISTS
 
 
Economic outlook uncertain, World Bank
08/11/2013 00:00:00
by Roman Moyo
 
 
RELATED STORIES
Chinamasa sees good times as Zim gets $1,5b
Chinamasa turns down job at Biti law firm
PDP schadenfreude as Chinamasa fired
Sleepless nights now behind me, Chinamasa
MPs to Chinamasa: be smart like Magufuli
Agric, mining to drive growth: Chinamasa
Chinamasa seeks to revive industries
Budget: Chinamasa’s near impossible task
Ignore Mugabe threats, West told
Skint Zimbabwe begs reviled IMF for help
Tax revenues dip as public spending rises
Chinamasa pleads for IMF help, almost
Economy to grow 9pc: Chinamasa
Chinamasa: No budget in November
No Zim$ return for 5 years: Chinamasa
Govt agrees to repay cash seized by RBZ
Wealth fund up next Feb: Chinamasa
Fiscal deficit widens as spending spirals
Minister back empty handed from IMF

THE World Bank says Zimbabwe’s economic performance has been dampened by the continued slowdown of key sectors of the economy, amidst easing international commodity prices.  

The bank said the 2014/15 outlook for the country’s ailing economy remains increasingly uncertain due to a host of internal and external factors.

In an update on the country’s economic performance, the WB said the rate of growth would greatly depend on the outcome of the agricultural season, international prices, and effective stabilization of levels of confidence of domestic investors. 

Growth in Zimbabwe was rapidly fading, and after the 4,4 percent uptick recorded in 2012, growth projections for 2013 have been revised downwards to three percent, with little prospects for a recovery in 2014.

“Zimbabwe’s 2014-2015 growth potential could be boosted by stronger policy coherence, improved business climate, and overall improvement in the provision of basic services to firms and individuals,” the WB said.  

The economy faces uncertainty from expected volatility in the global economy and, on the domestic front, worsening macroeconomic indicators and increased vulnerability of the banking sector.

As Zimbabwe’s external position has been supported by substantial short-term capital inflows, the situation would be compounded by the risk of capital outflows from emerging markets, as the United States Federal Reserve progressively unwinds its expansionary monetary policy.

Growth performance has been stymied by continued slowdown of the key sectors of the economy, amidst easing of international commodity prices, low investment, tight credit conditions, and policy uncertainty after the July elections.

According to World Bank, agriculture negatively impacted growth in 2013, and slightly contracted (-1.3 percent).

“The performance of the 2013 season has been largely below initial projections following the strong contraction in maize and cotton, due to the drought season; lower hectarage plated and subdued yields,” the bank said.

“Maize declined by 17,5 percent to reach 798 600 tons in 2013 which is 56 percent below the national requirement of 1.8 million tons.”

World Bank said the traditionally resilient cotton sector, which traversed almost unscathed the tumultuous decade long crisis, slumped in 2013, with an estimated 108 832 tons compared with 350 000 tonnes in 2012 as many farmers switched over to other crops in response to lower 2012 prices.  



Advertisement

Manufacturing sector growth is projected at 1,5 percent amidst low levels of investment, declining competitiveness and tight credit conditions.

Economist said the expected increased volatility of commodity prices could affect Zimbabwe’s export growth, worsening the current account deficit, shrinking fiscal revenues and upsetting the economic recovery process.


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker