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Zimbabwe's economy to shrink by 4.5 pct due to impact of COVID-19: finance minister
Source: Xinhua| 2020-07-17 00:51:15|Editor: huaxia
HARARE, July 16 (Xinhua) -- Zimbabwe's economy is projected to shrink by 4.5 percent in 2020 from 3 percent earlier projected due to the negative impact of the COVID-19, Finance and Economic Development Minister Nthuli Ncube said Thursday.
He was presenting the mid-term budget and economic review statement in the parliament.
He said the economy was poised to contract severely had the government not provided a stimulus package of 18.2 billion Zimbabwe dollars (264 million U.S. dollars) to companies in June to cushion them from the harsh effects of the pandemic.
"In the absence of the above stimulus package and assuming prolonged and severe impact of the crisis, the economy would contract severely," he said.
"Therefore, a combination of government and external development support in mitigating the COVID-19 pandemic is expected to alleviate deeper contraction of the economy to a projected -4.5 percent GDP growth in 2020, against the initial budget projection of 3 percent growth," the minister said.
However, the economy is anticipated to recover and record GDP growth of about 7.4 percent in 2021 before moderating to around 5 percent thereafter, the minister added.
Out of the 300 million U.S. dollars international funding appeal made by government in April to mitigate the impact of COVID-19, development partners have so far pledged 202.6 million U.S. dollars of which 26 million U.S. dollars has already been disbursed...
Zimbabwe's economy to shrink by 4.5 pct due to impact of COVID-19: finance minister
Source: Xinhua| 2020-07-17 00:51:15|Editor: huaxia
HARARE, July 16 (Xinhua) -- Zimbabwe's economy is projected to shrink by 4.5 percent in 2020 from 3 percent earlier projected due to the negative impact of the COVID-19, Finance and Economic Development Minister Nthuli Ncube said Thursday.
He was presenting the mid-term budget and economic review statement in the parliament.
He said the economy was poised to contract severely had the government not provided a stimulus package of 18.2 billion Zimbabwe dollars (264 million U.S. dollars) to companies in June to cushion them from the harsh effects of the pandemic.
"In the absence of the above stimulus package and assuming prolonged and severe impact of the crisis, the economy would contract severely," he said.
"Therefore, a combination of government and external development support in mitigating the COVID-19 pandemic is expected to alleviate deeper contraction of the economy to a projected -4.5 percent GDP growth in 2020, against the initial budget projection of 3 percent growth," the minister said.
However, the economy is anticipated to recover and record GDP growth of about 7.4 percent in 2021 before moderating to around 5 percent thereafter, the minister added.
Out of the 300 million U.S. dollars international funding appeal made by government in April to mitigate the impact of COVID-19, development partners have so far pledged 202.6 million U.S. dollars of which 26 million U.S. dollars has already been disbursed...