Chronicle Editor
INDUSTRY expects capacity utilisation to improve to 56 percent in the second quarter of the year, an improvement from 47 percent in the first quarter, but still lower than the previous year-end projection.
If capacity utilisation closes the year at 56 percent, then it would have missed the previous end of 2021 forecast of 61 percent projected in the Confederation of Zimbabwe Industries’ (CZI) Manufacturing Sector Report of 2020.
Last year’s capacity utilisation was estimated to be at 47 percent as well.
Over 86 percent of the respondents to a survey conducted by the CZI forecast that the economic situation in the country will be better or will remain the same for the rest of the year.
In its latest Quarterly Business and Economic Intelligence Report, CZI said projections and outlook are mainly positive based on expectations that stability will be sustained and inflation will continue downwards.
Annual inflation has fallen from a peak of 837 percent in July last year to 106 percent at the last count in June this year. In its latest forecast, the Reserve Bank of Zimbabwe’s Monetary Policy Committee is now expecting inflation to close the year at 25 percent.
The central bank had previously projected annual inflation to close the year lower than 10 percent.
The month of June 2021 saw a resurgence in inflation pressures with month-on-month inflation ticking up to 3,88 percent gaining 1,34 percentage points on the May 2021 rate of 2,54 percent. – Business Weekly
derick.khumalo