Zimbabwe's economy forecast to grow by 3.8 pct in 2023-Xinhua

Zimbabwe's economy forecast to grow by 3.8 pct in 2023

Source: Xinhua| 2022-11-25 01:14:30|Editor: huaxia

HARARE, Nov. 24 (Xinhua) -- Zimbabwe's economy is forecast to grow by 3.8 percent in 2023, driven by mining, construction, agriculture and tourism, Finance Minister Mthuli Ncube said Thursday.

Presenting the 2023 national budget speech in the new parliament building in Mt Hampden, Ncube said next year's growth is expected to be powered by favorable international commodity prices, a good agricultural season, stable power supply and tight monetary and fiscal policy, among others.

Ncube said the government will continue with its tight fiscal and monetary policy measures to keep inflation under control.

Monthly inflation reached a peak of 30.7 percent in July this year but after various interventions such as introduction of gold coins and hiking of interest rates, the rate gradually declined to 3.2 percent in October. Annual inflation also declined from 285.1 percent in August to 268.8 percent in October.

"Going forward, supportive monetary and fiscal policies, as well as coordinated interventions, will be maintained to sustain the current inflation deceleration path. In this regard, the government is setting a month-on-month inflation target of between 1 and 3 percent, and a fiscal budget deficit of not more than 1.5 percent of GDP during 2023," Ncube said.

Zimbabwe's economy is forecast to grow by 4 percent in 2022, slightly down from 4.6 percent initially projected due to the impact of high inflation and curbs on speculative borrowing, Ncube added.