- Zimbabwe's GDP grew by 6.5%, beating the projected 5.5% growth rate.
- Agriculture and mining were the biggest contributors to this growth.
- Policymakers must prioritize economic development and support key sectors
Harare-Zimbabwe's economy has exceeded expectations, registering a 6.5% increase in gross domestic product (GDP) growth last year, surpassing the projected 5.5% growth rate. The Zimbabwe National Statistics Agency (ZimStat) has attributed this growth to key sectors such as agriculture, mining, manufacturing, wholesale and retail, and finance and insurance.
According to the preliminary report, GDP increased to ZW$225.99 billion in 2022, up from ZW$212.1 billion in the prior year. This growth was underpinned by favourable external factors such as normal-to-above-normal rainfall patterns, a subdued Covid-19 pandemic, relatively stable exchange rates, declining inflation, and favourable international mineral prices.
The agriculture industry, which accounted for 80.5% of value-added products, was largely driven by crop production. Crops that recorded significant growth in 2022 were wheat at 11.3%, maize at 6%, and soya beans at 15.5%. The mining and quarrying sector was largely driven by the mining of metal ores, including gold, platinum group of metals (PGMs), nickel, and lithium. These metals recorded significant growth in 2022, with gold at 18%, PGMs at 10%, and lithium at 236%.
The manufacturing industry recorded a 5.9% growth rate, with the food, beverages, and tobacco sub-sector being the largest contributor to the growth. The wholesale and retail trade sector recorded a 7.2% growth rate, with the largest contributor being the food, beverages, and tobacco sub-sector. The finance and insurance sector recorded a 12.3% growth rate, with the largest contributor being the insurance sub-sector.
The positive economic growth is a testament to Zimbabwe's resilience and determination amidst a challenging global economic environment. However, policymakers must continue to prioritize economic development and growth to ensure sustained progress in the future. In particular, the government should continue to support key sectors such as agriculture, mining, and manufacturing, and address challenges such as corruption and lack of access to finance for small and medium-sized enterprises.
Overall, the strong GDP growth in Zimbabwe is a positive sign for the country's economy. With continued focus on key sectors and policies that promote sustainable growth, Zimbabwe can continue to build a strong and resilient economy that benefits all its citizens.
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