The Sunday News
ZIMBABWE’S economy is projected to grow by 3,1 percent in 2019, which is lower than the 2018 anticipated growth of 4 percent, on subdued agriculture performance due to unfavourable weather conditions. Presenting the 2019 National Budget ($8,1bn), Finance and Economic Development Minister Professor Mthuli Ncube also attributed the decline to macro-fiscal vulnerabilities from unsustainable fiscal and current account deficits.
Zimbabwe rebased its economy to $24,6 billion from $21 billion after taking into account the informal sector with most Zimbabweans now surviving from informal economic activities. The mining sector, for instance, whose growth had been reviewed to 25,8 percent was revised to 13 percent in 2018 and will further decline to 7,5 percent in 2019. In agriculture, growth projections of 12,4 percent were set and the sector will grow by 3 percent in 2019. The manufacturing sector’s growth was reviewed lower to 1,7 percent in 2018 from earlier projections of 2,8 percent as the sector succumbed to the economic shocks experienced in the last half of the year.
For 2019, the manufacturing sector’s growth is expected to improve to 2,5 percent. The challenges affecting the economy range from foreign currency shortages, an unsustainable budget deficit, infrastructure deficiencies, unsustainable debt as well as inflationary pressures. However, a 7 percent economic growth is anticipated from 2020 moving forward on the back of austerity measures that should be implemented early next year.
ALL SHARE
The All Share index recovered 2.28 points (1,46 percent) to close at 158.07 points. Econet added $0,1337 to close at $1,7590; RioZim traded $0,0700 higher at $1,8900 and Amalgamated Regional Trading increased by $0,0146 to $0,1000. PPC also gained $0,0100 to settle at $1,6100 and Fidelity Life was $0,0060 firmer at $0,1090.
Trading in the negative was First Mutual Limited which lost $0,0234 to close at $0,1566, AXIA dropped $0,0078 to $0,4372 and CBZ traded $0,0060 lower at $0,1500. Masimba also decreased by $0,0030 to $0,1020 and Meikles lost $0,0023 to $0,5977.
