inflation3.jpgThe country is on course to surpass the set 9.3% growth target by year end driven by robust performance in the mining, tourism and agriculture sectors, according to recently released half year economic performance figures.

 

Half year economic performance figures from the Ministry of Finance indicate that the country’s economy is poised to register over 9 % real GDP growth by December 2011, driven by positive performance of the mining industry which is riding on the booming mineral prices on the international market.

Despite limited support from the fiscus, the agriculture sector also continues to register growth as shown by improvements in tobacco output with the initial projection of 150 million kilogrammes having to be revised upwards to 178 million kilogrammes.

Inflationary pressures continued to slow down from the January rate of 3.5% to 2.7 % in March and further decelerating to 2 % in June raising optimism of the attainment of a lower inflation rate below the 4.5% projection by year end.

The export sector shows marked improvements with exports for the period January to May 2011 standing at US$1.6 billion compared to US$1.1 billion over the same period in 2010.

The figures from the fiscal authorities dispel gloomy projections by the Bretton woods institutions which have put the country’s growth for 2011 at 5.5%.

The country’s economy has been on a recovery path since 2009, however observers feel the economy can do better if key enablers including energy and the liquidity crunch are given adequate attention.