International

Massive Poverty Situation awaits Zimbabwe- World Bank

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Business Reporter

Zimbabwe is likely to face a deepening poverty situation emanating from the current economic doldrums over the recent years.

Stella IIieva World Bank Senior Economist revealed this at the Economic Outlook Symposium and 2019 Manufacturing Sector Survey Launch held by Confederation of Zimbabwe Industries (CZI) this Frday in the Capital.

In her presentation entitled ‘The World Bank Outlook on Zimbabwe in the context and of the Regional and Continental Outlook’ highlighted that Zimbabwe’s current sharp economic deterioration will result in massive poverty situation.

“Before 2019 the economy was growing faster than the regional peers but GDP have fallen by 7.5 percent, this entrails that uncertainty about Zimbabwe’s economic outlook is very high.”

“The economic outlook for Zimbabwe is likely to further increase ,requiring more social spending.”

The World Bank Economist however recommended for price stabilization, removal of foreign currency distortions, enhancing trade openness integration and mitigating the economic impact on the poor.

“Addressing price instability and distortions in the forex exchange market will be key to growth prspects , boosting firm productivity, enhancing trade openness and integration, mitigating the impact of the extreme weather economic adjustments on the poor and its important that the poor have access to food and education.”

World Bank’ s key findings defeats the projections made by Ministry of Finance and Economic Development which points towards a smooth transition from austerity to prosperity.

In a presentation made on behalf of Honorable Mtuli Ncube by Elson Chuzu Acting Deputy Director Economic Affairs in the Ministry of Finance Zimbabwe recorded economic growth under the Transition Stabilization Process (TSP).

“We have recorded a lot of surplus under the the TSP but have invited a lot of debate.First part of the TSP was accounted with austerity and the stage is now behind us.This year we should see stabilization in the economy as we have planned.”

Tendai Guvamombe