IMF Maintains Positive Outlook for Zimbabwe | allAfrica.com
THE International Monetary Fund (IMF) has maintained a positive growth trajectory outlook for Zimbabwe in 2021 of 5,1 percent largely supported by increased agricultural output, energy production and manufacturing and construction activities.
The projections are, however, below Government’s expectations of achieving 7,8 percent this year from an initial forecast of 7,4 percent.
The IMF on its part, had initially in June 2021, projected the economy to grow by 6 percent, indicating that the economy was on path to recovery largely due to a bumper harvest of maize.
According to the IMF’s “World Economic Report October 2021,” the country’s GDP growth will remain positive at 3,1 in 2022.
The report noted that global recovery continues but the momentum has weakened, hobbled by the pandemic, with overall risks to economic prospects having increased, and policy trade-offs have become more complex.
“Compared to our July forecast, the global growth projection for 2021 has been revised down marginally to 5,9 percent and is unchanged for 2022 at 4,9 percent.
“The report said that modest headline revision, however, masks large downgrades for some countries and outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics,” the IMF said.
According to Finance and Economic Development Minister Mthuli Ncube, the country’s strong economic growth trajectory this year is anticipated to spill over, projecting a 5,4 percent growth in 2022.
The economic growth target is consistent with the attainment of Vision 2030 of an upper middle income status by 2030 and meeting the targets of the National Development Strategy 1 (NDS1).
An IMF team led by Dhaneshwar Ghura conducted a virtual staff visit with the Zimbabwe authorities during the period June 1-15 2021 to discuss recent economic developments and the economic outlook.
At the conclusion, the IMF indicated that Zimbabwe had shown resilience in the face of the Covid-19 pandemic and other exogenous shocks.
“The pandemic, on top of Cyclone Idai in 2019, a protracted drought, and weak policy buffers, has taken a severe toll on the economic and humanitarian situation.
“Despite the authorities’ timely actions to support the most vulnerable groups and businesses during the pandemic, real GDP contracted by 4 percent in 2020, after a 6 percent decline in 2019.
“However, an economic recovery is underway in 2021, with real GDP expected to grow by about 6 percent, reflecting a bumper agricultural output, increased energy production, and the resumption of greater manufacturing and construction activities,” the IMF noted.
The IMF mission also noted the authorities’ efforts to stabilise the local currency and lower inflation as well indicating that contained budget deficits and reserve money growth, as well as the introduction of a foreign exchange auction system, are policy measures in the right direction.
The team also noted that Zimbabwe has been a fund member in good standing since it cleared its outstanding arrears to the IMF in late 2016.
Recently, Zimbabwe received US$961 million under the IMF’s US$650 billion SDR allocation earmarked to provide additional liquidity to the global financial system.
What must Muqtada al-Sadr do to effectively govern Iraq? In the Financial Times
We begin the presentation of British newspapers from an opinion piece by the FT’s international affairs editor, David Gardner, entitled “For Iraq to be governed effectively, Muqtada al-Sadr must abandon partisanship.”
“Muqtada al-Sadr came first in the Iraqi general elections on Sunday. This confirmed his position as the most powerful and popular figure in the country. It is doubtful whether this would make it easier to govern Iraq, a feeble state contested between the United States and the United States,” the writer says at the beginning of his article. Iran, the arena of Sunni jihadist massacres.
Muqtada al-Sadr, a scion of the aristocracy of the clergy that opposed the dictatorship of Saddam Hussein, who was toppled in 2003 and a former hero of the disenfranchised Shiites, rediscovered himself as an Iraqi patriot who wants Americans and Iranians out of the country. He cemented a populist image by provoking himself. His Shiite opponents and corruption. As an Islamist, he appeals to a higher authority and pretends to be above politics, while ruthlessly seeking power.”
The writer explains, “Since 2019, al-Sadr has occupied Iraqi institutions and ministries with his cadres. Although al-Sadr theoretically dissolved the Mahdi Army in 2008, he revived it – under the name Saraya al-Salam – in 2014, when ISIS forces (ISIS in the Iraq and the Levant) from Baghdad and the cities of Najaf and Karbala.
He says, “As for the next Iraqi prime minister, he will be nominated by him or require his approval link
Trade: new measures to help foreign investors and companies
Today, Thursday, the Ministry of Commerce announced work on an automation system to facilitate procedures for auditors, while indicating that it has taken measures to reduce the burden on investment companies.
The ministry’s spokesman, Muhammad Hanoun, said, “The Ministry of Commerce, through the issuance of import licenses and the work of the Companies Registration Department, was able to provide transparent and clear procedures to help investors, businessmen and foreign companies to issue licenses to these companies, whether public or private, as well as to branches of international investment companies in Baghdad and the provinces.”
Hannoun added: “We are now working on an automation system and facilitating the task of auditors for the Companies Registration Department and the General Company for Exhibitions and Commercial Services. A few days ago, we agreed with an electronic payment company in order to help these companies pay through the use of electronic technologies, and thus we facilitated a lot of audits and deadly routines that It used to happen in previous years.”
He continued, “These measures contributed significantly to easing the burden on investment companies to obtain opportunities inside Iraq, as well as import licenses for materials entering Iraq through border gates and outlets. link
Source: Dinar Recaps
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