Economy now stable despite blips — Mthuli Finance and Economic Development Minister Professor Mthuli Ncube

Mukudzei Chingwere
Herald Reporter
THE Government has assured economic stability despite flash blips witnessed recently and the threat of the Covid-19 pandemic that has left many scars on global economies.

Finance and Economic Development Minister, Professor Mthuli Ncube said this in an interview with The Herald, giving assurance that measures put in place to insulate the local currency were sustainable and being fortified.

“There is a predictable environment, the exchange rate and also a downward environment for inflation. You want inflation to come down and it is on the way down overall.

“We expect year-on-year-on inflation in the teens and month-on-month inflation averaging two percent and below so we are on track for that trend in terms of macro stability and growth is coming through,” said Prof Ncube.

He said the current situation is that there is still macro-economic stability and there is determination to maintain macro-economic stability and supporting sustainable economic growth, on the macro front, as well as providing cover for the micro-economy.

Explaining the micro-economy as agriculture, mining, tourism, infrastructure development, industry stability and supporting growth in those areas.

The World Bank recently commended the Government’s economic revival framework and noted that Zimbabwe was poised to register economic growth this year despite a raft of challenges posed by the Covid-19 pandemic.

Gross Domestic Product (GDP) growth in Zimbabwe was projected to grow by 3,9 percent in 2021, in what the World Bank said was a significant improvement after a two-year depression.

Earlier, the African Development Bank (AfDB) projected a 5,6 percent economic growth this year driven by recovery in the agriculture, mining and tourism sectors, together with increased public and private investments.

“We have maintained a growth rate of 7,8 percent for 2021. You have seen some of the major financial institutions globally, also upgrade their growth rate for Zimbabwe.

“The IMF upgraded its growth rate for Zimbabwe to six percent and this in a sense, affirms what we were predicting all along. The World Bank, they also projected positive growth, the AfDB the same, so you see a similar sentiment coming through that indeed the Zimbabwe economy is on a rebound and macro-economic stability has been engendered,” he said.

Minister Ncube said Government was supporting the foreign currency auction system to prop up the private sector.

“We want to support and fine-tune the auction so that it can be more efficient,” said Minister Ncube.

The Zimbabwe National Statistics Agency (ZimStat) said the month-on-month inflation rate in June 2021 was 3,88 percent, gaining 1,34 percentage points on the May 2021 rate of 2,54 percent.

“The Consumer Price Index for the month ending June 2021 stood at 2,986.44 compared to 2,874.85 in May 2021 and 1, 445.21 in June 2021,” reads part of the statement.

Details were also availed for the Blended Consumer Price Index for June 2021 which was 4,49 percent, gaining 2,69 percentage points on the May 2021 rate of 1,80 percent.

“The year-on-year inflation rate (annual percentage change) for the month of June 2021 as measured by the all items blended CPI stood at 40,91 percent.

“The blended CPI for the month ending June 2021 stood at 120,80 compared to 115,61 in May 2021 and 85,73 in June 2020.”

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