Zim economy surpasses expectations as country’s GDP rises to 6,5pc

Leafias Mazviro

Zimbabwe has registered a 6,5 percent gross domestic product (GDP) growth beating the expected growth rate of 5,5 percent, a result of key sectors such as agriculture, mining, manufacturing, wholesale and retail, and finance and insurance as reported by The Zimbabwe National Statistics Agency (ZimStat).

According to the preliminary report, the country’s GDP has increased to ZWL$225,99 billion in 2022, up from ZWL$212,1 billion recorded previous year.

Zimstats outlines a number of favourable external factors underpinning the development which includes normal to above-normal rainfall, moderate Covid-19 epidemic restrictions, relatively stable exchange rates, declining inflation and favourable international mineral prices.

It states that the agricultural sector, which accounts for 80,5 percent of product added value, is mainly driven by crop production.

The crops with significant growth in 2022 are wheat at 11,3 percent, corn at 6 percent and soybean at 15,5 percent.

Secondly it notes that the mining and quarrying sector is mainly driven by the extraction of metal ores, especially gold, platinum group metals (PGM), nickel and lithium.

These metals have significant growth in 2022, with gold at 18 percent, PGM at 10 percent and lithium at 236 percent.

In addition, the processing and manufacturing industry recorded a growth rate of 5,9 percent, of which the food, beverage and tobacco sub-sectors contributed mainly to this growth.

Other sectors such as the wholesale and retail sector recorded a growth of 7,2 percent, of which the largest contributor was the food, beverage and tobacco sub-sector.

The finance and insurance sectors recorded a level of 12. The growth rate is 3 percent, the largest contributor is the insurance sub-sector.

Buoyant economic growth shows Zimbabwe’s resilience and determination in the challenging global economic environment.

However, an independent business analyst research firm, Equity Axis recommended that the policymakers must continue to prioritise development and economic growth to ensure sustainable progress in the future.

It asserted that the government has a duty to continue to support key sectors such as agriculture, mining and manufacturing, while addressing challenges such as corruption and lack of access to finance for SMEs.

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