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Business Reporter
Zimbabwe’s economy grew by 1,5 percent in the second quarter of this year, following an 11,1 percent decline in the first quarter, mainly driven by accommodation, food services, and increased electricity output.
In the outlook, the domestic economy remains on the right track and is expected to grow by 5,3 percent this year, with macro-economic stability set to continue driven by “recent bold interventions” to address hurdles encountered in the first three months.
In the first quarter of the year, the economy was weighed down by a decline in electricity production, reduced mineral output, depressed demand for goods and services, and a downturn in manufacturing production.
In a statement, the Zimbabwe National Statistics Agency (ZimStat) said “The quarter-to-quarter growth rate measures the change in gross value added for successive quarters. The GDP growth rate for the second quarter of 2023 is estimated at 1,5 percent.”
The year-on-year quarterly growth rate, which measures the growth in value-added for a particular quarter in relation to the same quarter in the preceding year, saw the year-on-year quarterly growth rate for the second quarter estimated at 4,5 percent.
Zimbabwe’s economy also registered modest growth in the second quarter of this year, benefiting partly from increased power output following the coming online of two new generators at Hwange Power Station
“The value added for accommodation and food services is mainly measured by changes in bed occupants for hotels and lodges. The second quarter of 2023 recorded a surge in bed occupancy resulting in a growth of 58,6 percent,” said ZimStat.
Electricity supply, which registered a significant decline during the first quarter, improved massively in the quarter under review, resulting in the period experiencing reduced load-shedding apart from supply interruptions caused by faults.
ZimStat said “Electricity value added is measured by the quarterly index of electricity production. In the second quarter, electricity production improved by 18,3 percent, benefiting from the technical commissioning of Hwange 7 and 8 thermal power stations.”
Other sectors that contributed to the recovery of the economy in the second quarter included the transport and storage industry, which recorded a growth rate of 12,7 percent, and water which grew by 11,3 percent.
Agriculture grew by 8,1 percent mainly on account of improved output in tobacco, which achieved record output this year. cotton, and horticulture production among others. Growth in construction was estimated from the index of cement sales.
The country witnessed a growing level of construction activity on account of massive Government projects across the country as well as private construction initiatives, including individual residential home development.
As such, the construction industry recorded a growth rate of 7,7 percent during the second quarter of the year, whilst the mining and quarrying industry expanded by 4,7 percent driven by better output in gold, nickel coal, phosphates, and granite mining.
On the contrary, some industries registered negative growth during the period.
Wholesale and retail trade, repair of motor vehicles and motorcycle industry were weighed down by value chain short circuits, hence recorded a decline of 6,3 percent.
Online Reporter