Treasury has expressed confidence in the recovery of the economy in 2020 to be underpinned by better agricultural season and pro-production measures with the real Gross Domestic Product growth rate for next year projected at 3%.
The Ministry of Finance and Economic Development says the 2020 National Budget will be geared at stimulating productivity across all sectors, jobs creation and enhancing of the competiveness of the domestic economy.
Addressing legislators attending the ongoing 2020 National Budget Seminar, Finance and Economic Development Minister, Professor Mthuli Ncube, highlighted that economic recovery is projected for 2020 underpinned by macro-economic stabilization measures and enhanced production.
“In 2020, the economy is projected to turn around building on the success of the ongoing reform initiatives. The growth will be underpinned by a better agricultural season and measures to enhance production,” said Professor Ncube.
The three percent real GDP growth for 2020 is being made on the assumption of an improved rainfall season, recovery in aggregate demand, improved forex inflows particularly from mining and improved macro-fiscal stability.
Reserve Bank of Zimbabwe Governor, Dr John Mangudya, said the recent currency measures should be complemented by confidence building measures and enhanced production.
“We need to concentrate on productivity and enhancing confidence within the economy. Apart from that we also need mind Reset from polarisation and negativity to the spirit of togetherness,” explained Dr Mangudya.
Economic Analyst, Mr Persistence Gwanyanya said apart from addressing lack of trust between government and business there is need to rebalance the economy towards production.
“All these efforts to rebuild are ineffective in absence of confidence. Confidence is action-oriented & result driven. We need Commonality of Purpose, to speak with one voice,” noted Gwanyanya.
While treasury is confident of recovery is 2020, exchange rate risk, re-dollarisation pressures, weak aggregate demand, power outages and inflationary pressures remains some of the threats to the envisaged growth.