Breaking Business News Today Zimbabwe: Economic Indicators Point to Positive Growth in 2021
Zimbabwe, located in Southern Africa, has seen a lot of economic turbulence in the past. However, recent economic indicators suggest that the country is poised for a positive growth trajectory in 2021.
The Current Economic Landscape in Zimbabwe
In 2020, Zimbabwe was hit hard by both the COVID-19 pandemic and the drought that affected the southern region of Africa. The country saw a significant decrease in foreign markets, leading to a decrease in its GDP. However, the Zimbabwean government worked hard to mitigate the effects of the pandemic and its associated lockdowns, which resulted in agriculture rebounding in the country.
Positive Growth Projections for Zimbabwe in 2021
Despite the pandemic and the economic downturn, there is good news for Zimbabwe. Projections suggest that the country’s economy will grow by around 3.1% in 2021. This growth is expected to be driven primarily by strong growth in agriculture, mining, and tourism.
The agricultural sector is particularly well-positioned for growth owing to the good rains that have been experienced in the country. The mining sector is also expected to see rapid growth as commodity prices rise globally. Lastly, the tourism sector is likely to recover from the pandemic shock as international travel starts to take off.
The Government’s Economic Reforms
The Zimbabwean government has also implemented various economic reforms that have helped achieve stability and growth. One such reform is the floatation of the local currency, which has helped reduce the country’s dependency on foreign currencies.
Additionally, the government has also established the Zimbabwe Investment and Development Agency (ZIDA) which seeks to attract foreign investments by providing a one-stop-shop for investment approvals.
Conclusion
In conclusion, despite the challenges of 2020, Zimbabwe is setting itself up for a great year ahead. The country’s economic indicators are pointing towards positive growth, thanks to the rise in the agricultural and mining sectors. The government’s reforms towards sustainable economic growth are also paying off. All these have given Zimbabweans reasons to be optimistic about the future of their economy.
