RBZ anticipates 5,3pc growth despite exchange rate shifts

Abel Karowangoro

The Reserve Bank of Zimbabwe (RBZ) has released its 2023 Mid-term Monetary Policy Statement, highlighting the nation’s promising economic prospects amidst exchange rate fluctuations.

The statement projects a robust economic growth rate of 5.3 percent for the year, despite the challenges posed by currency volatility during the second quarter of 2023.

The announcement comes as a reassurance to both local and international stakeholders amid concerns about the impact of exchange rate fluctuations on Zimbabwe’s economic trajectory.

The 5,3 percent growth projection underscores the resilience of the domestic economy and its potential to navigate through prevailing challenges.

In the official statement, the RBZ indicated that despite the volatility experienced in the exchange rate during the second quarter, the fundamentals driving growth remain intact.

Factors such as increased agricultural production, mineral exports, and improved business confidence are cited as key contributors to the projected growth rate. While acknowledging the challenges posed by exchange rate fluctuations, the RBZ remains committed to its mandate of maintaining monetary stability and fostering sustainable economic growth.

The statement also outlined measures aimed at addressing exchange rate volatility and ensuring a conducive environment for economic expansion.

Commenting on the mid-term monetary policy, RBZ Governor John Mangudya, said, “The 5,3 percent growth projection reflects our confidence in the country’s economic resilience and potential. We are taking proactive steps to address the challenges posed by exchange rate volatility, ensuring that our growth trajectory remains on track.”

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