Zimbabwe's Economy Set to Rebound Amid Challenges
Zimbabwe's economy is expected to rebound to a 6% growth rate this year, buoyed by strong agricultural production, high gold prices, and remittances. Despite macroeconomic stability, challenges persist, including a reliance on local borrowing and a gap in foreign exchange rates.
- Country:
- Kenya
The International Monetary Fund (IMF) has projected a rebound in Zimbabwe's economic growth to 6% this year, supported by improved agricultural output, soaring gold prices, and solid remittance inflows.
Last year, the country's growth slumped to 1.7% primarily due to a drought impacting crop yields and hydroelectric power generation.
While the government forecasts a 6.6% growth rate, the IMF warns of potential medium-term slowdown to 3.5%, attributed to lingering economic policy challenges and reliance on local borrowing, which could restrain private credit growth.
(With inputs from agencies.)
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