HARARE: Zimbabwe’s economic growth is forecast to slow to 3.5 percent in 2022 due to renewed domestic and external shocks, the International Monetary Fund (IMF) said Thursday.
After registering a robust growth of 8.5 percent in 2021 due to the government’s swift response to the COVID-19 pandemic, the economy is now under pressure from multiple shocks, the IMF said.
“Renewed domestic and external shocks are, however, adversely affecting economic and social conditions. Real GDP growth is thus expected to decline to about 3.5 percent in 2022,” IMF team leader Dhaneshwar Ghura said in a statement at the conclusion of the IMF Article IV Mission to Zimbabwe.
Ghura said a surge in inflation, erratic rainfall, electricity shortages, and the Russia-Ukraine conflict are some of the shocks impacting negatively on Zimbabwe’s economy.
The IMF acknowledged Zimbabwe’s efforts to stabilize the local foreign exchange market and lower inflation but warned that uncertainty remains high while the economic outlook will depend on the implementation of key policies and the evolution of external shocks.
Ghura added that durable macroeconomic stability and revitalizing structural reforms would support Zimbabwe’s development objectives as embodied in its economic blueprint, the National Development Strategy 1 running from 2021-2025.