adminIn its World Economic Outlook, the IMF said the country would register a five percent increase in economic growth this year and an increase of one percent next year although the economy is likely to slow down to four percent in 2017.
“The European economic crisis and the possible slowdown in China’s performance in the short term, will likely affect economies of countries in sub Saharan Africa, including Zimbabwe,” said IMF.
South Africa, which is strongly linked to Europe through trade, will be affected, with the repercussions felt by its neighbouring countries.
The IMF said prices of softer commodities, which include wheat, tobacco and coffee, would adversely affect the region’s natural resource exporters. “The priority of the sub Saharan region is for governments to continue to strengthen economic policy buffers and prepare contingency plans if the downside risks materialised,” said the IMF.
Zimbabwe’s economic growth since 2009, after a decade of economic turmoil, has been driven by the adoption of multi foreign currencies.
Major sectors of the economy like agriculture and mining have also contributed significantly to the economic recovery efforts.
IMF said the slowdown in Zimbabwe’s economic growth could be attributed to the liquidity crunch, absence of foreign investors and the failure to obtain financial support.
The global economic recovery is weakening as policymakers in Europe and the US have failed to ensure positive growth in the global economy.
derick.khumalo
Online Reporter