HARARE, July 21 — Zimbabwe’s economy is projected to grow by 5.4 percent next year, driven by growth in mining, manufacturing and electricity sectors, the country’s information minister said on Tuesday.
According to the 2022 budget strategy paper presented by the Finance Minister during a cabinet meeting, government revenue is expected to rise to 17.8 percent of the gross domestic product (GDP) next year from 16.4 percent in 2021, said Information Minister Monica Mutsvangwa.
Expenditure will also increase to 19.4 percent of the GDP from 18.2 percent in 2021.
The Zimbabwean government has projected the country’s economy to weather the COVID-19 pandemic and register a 7.5-percent growth in 2021, recovering from a recession last year.
“In the 2022 national budget, the government will prioritize to sustain macroeconomic stability, to create a conducive environment for business investment and to improve the living standards of the majority,” Mutsvangwa said during a post-cabinet media briefing.
Meanwhile, Mutsvangwa said to boost foreign currency earnings from tobacco, the cabinet had approved a new policy to localize the financing of tobacco production, as opposed to the current system where the bulk of the crop is financed through offshore funding.
Tobacco leaf is one of the major foreign currency earners for Zimbabwe. (Xinhua)
Zimbabwe’s economy projected to grow by 5.4 pct next year
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