HARARE, Jul 21 (NNN-IRIN) – 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, yesterday.
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 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 prioritise 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 briefing.
Meanwhile, Mutsvangwa said, to boost foreign currency earnings from tobacco, the cabinet approved a new policy to localise 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.– NNN-IRIN
