4,6 percent growth attainable: ZNCC

THE Zimbabwe National Chamber of Commerce (ZNCC) has said there is need to minimise downside risks in major economic sectors in order for the country to attain the 4,6 percent gross domestic product (GDP) projected growth.

The major sectors to help attain the projected growth include the manufacturing, mining, agriculture, tourism, export market, construction, financial and Information and communications technology (ICT) sectors.

In their August newsletter, ZNCC said: “The growth target can be achieved if the impact of the downside risks such as additional supply disruptions, geopolitical tensions, stagflation, and fragmentation of trade, investment and financial networks is minimised.”

“Zimbabwe, as a small open economy, has to effectively manage its exchange rate and minimise its negative pass-through effects to ensure a sustainable recovery path.”

The chamber said policymakers have to prioritise the stabilisation of prices so that the recovery path is not disturbed.

“The policymakers should prioritise price stability to avoid derailing the recovery we are experiencing and also implement targeted support to the poor instead of distortionary policies to respond to high energy and food prices. Due to spiralling energy prices, encouraging greater energy efficiency and accelerating the transition towards low-carbon energy sources need not be emphasised,” they said.

Meanwhile, in July this year Finance and Economic Development Minister Professor Mthuli Ncube revised GDP growth projections to 4,6 percent from the initial 5,5 percent due to external global developments and Zimbabwe’s “unique” circumstances.

Professor Mthuli Ncube

Professor Ncube said the domestic economy has not been protected from the global shocks, particularly from rising commodity prices, inflation, geo-political tensions in Eastern Europe and as well as disruptions on supply chains.-chronciel.zw