By Shadreck Gurenje
President Mnangagwa has said despite challenges associated with the external debt overhang, global climate shocks, and the albatross of illegal economic sanctions, Zimbabwe is realising key milestones.
Giving his keynote address at the High-Level structured platform: Arrears clearance and Debt resolution process, President Mnangagwa said the country’s economy under the Second Republic has improved and demonstrated resilience registering 5.3percent growth in 2023.
President Mnangagwa also reiterated that Government remains committed to maintaining fiscal discipline through sustainable budget deficit of less than 2percent of GDP.
“The Zimbabwean economy has shown resilience registering 5.3pecrent growth in 2023.This is projected to grow by 2percent in 2024, mainly on account of the Elnino induced drought, which affected agricultural production.
“In 2025, the economy is projected to rebound and grow by 6percent due to the recovery of agriculture and mining sectors. Despite challenges associated with the external debt overhang, global climate shocks, and the albatross of illegal economic sanctions, Zimbabwe is realising key milestones.
Government remains committed to maintaining fiscal discipline through sustainable budget deficit of less than 2percent of GDP,”Said President Mnangagwa.
The Head of state and Government also said tight monetary policy to support the effective management of money supply growth will remain in place to buttress the coordination between fiscal and monetary policies.
“Similarly, tight monetary policy to support the effective management of money supply growth will remain in place’s-ordination between fiscal and monetary policies will ensure stability of the exchange rate and low single digit inflation.
“To bolster macro-economic stability, my government in April 2024, introduced a new local currency, the Zimbabwe Gold(ZIG).In addition ,all reserve bank of Zimbabwe foreign currency liabilities were transferred to Treasury and these are now being financed through the National budget. In terms of the exchange rate, there is now greater flexibility on the foreign exchange market,” said President Mnangagwa.
President Mnangagwa also said government will prioritise the protection of vulnerable groups through effective social protection programmes .
“To anchor implementation of further economic reforms under the Arrears Clearance and debt resolution process, Government is currently negotiating a staff monitored programme (SMP), with the international Monetary Fund.
“The implementation of any reforms under the SMP, However impacts negatively on the vulnerable groups of our population. In this regard, the protection of vulnerable groups, through effective social protection programmes is of critical importance to my government,”said President Mnangagwa.