biti tendai.jpgZimbabwe’s economic growth rate target has been revised 3 times this year owing to dynamics in macro-economic framework.

 

 In December 2009, it was anticipated that the economy was to grow by 7.7%  figure which was later revised downwards to 5.4 % before being revised upwards to 8.1%.

Various economic challenges continue to hamper the full potential of Zimbabwe’s economy although a cocktail of measures has been adopted to ensure that Zimbabwe becomes the economic hub of southern Africa.

Announcing the latest economic growth rate figures, Finance Minister, Tendai Biti said the developments in the economy is especially related to the performance of the tobacco sector which has turned agriculture to be the major economic driver.

Revising economic growth downwards in the mid-term fiscal policy review statement from 7.7 % to 5.4 % was attributed to slow economic performance and skeptics on the indigenization and economic empowerment regulations by investors.

Zimbabwe National Chamber of Commerce Deputy President, Mr. Oswel Binha explained that the latest economic target is attainable as there has been a lot of interest in the country’s mining sector while a lot of credit lines have been realized in the second quarter of the year.

Revision of the Gross Domestic Product thrice in a year shows that the minister is appreciating what the nation has achieved so far, explained Mr. Binha. 
 
Farmer and analyst, Jonathan Kadzura said the adjustment of economic growth rate upwards on the basis of the tobacco deliveries at the auction floors is a clear sign of the success of the country’s agrarian reform adding that the projection of a 7.7 % growth was based on false information that the minister got from farmer organizations.

The success of the tobacco crop this season has once again reinforced the fact that the basis of the country’s economy lies in the utilization of land.

 

Collecting revenue of 1.9 billion so far, government is expected to come up with more macro-economic policies that promote investment and the inflow of lines of credit.

The 8.1%  projected growth rate is not far from what the 7.1 % which the World Bank estimated at the beginning of the year though the Bretton Woods Institution had anticipated a slow down to 6.3  in 2011.

Closing the year at 8.1% of Gross Domestic Product, it is now realistic to aim a double digit growth next year.