GDP reaches $56,7 billion in Q2
ZIMBABWE’s gross domestic product (GDP) reached $56,7 billion in the second quarter when compared to $54,3 billion recorded in the same period last year with value-added goods increasing by 1,5 percent in the period.
GDP refers to the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.
As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health.
According to ZimStat’s second quarter GDP report it released on Monday, the growth is mainly on account of improved electricity production and increased mineral output among other factors.
“The second quarter of 2023 recorded a growth of 1,5 percent in value added from the first quarter of 2023.
“The growth in the second quarter is mainly on account of improved electricity production, increased mineral output, improved agriculture output, increased manufacturing output, and a surge in accommodation and food service,” it said.
Electricity value added is measured by the quarterly index of electricity production. In the second quarter, electricity production improved by 18,3 percent benefitting from the technical commissioning of Hwange 7 and 8 thermal power stations.
On the other hand, the value added for accommodation and food services is mainly measured by changes in bed occupancy for hotels and lodges. The second quarter of 2023 recorded a surge in bed occupancy resulting in a growth of 58,6 percent.
“The 2023 second quarter recorded a year-on-year growth rate of 4,5 percent when compared with the second quarter of 2022. On a year-on-year basis, industries that recorded significant growth in the second quarter of 2023 are mining and quarrying, which recorded 23,5 percent, information and communication, 10,8 percent, construction, 9,6 percent, finance and insurance, 5,3 percent and wholesale and retail trade, 5,2 percent.”
On a quarter-to-quarter basis, ZimStat said selected industries that grew in the second quarter of 2023 are accommodation and food services which grew by 58,6 percent, electricity, 18,3 percent, transport and storage, 12,7 percent, agriculture, 8,1 percent, construction, 7,7 percent, manufacturing, 4,9 percent and mining and quarrying, 4,7 percent.
The report noted that the agriculture sector grew on account of improved output in tobacco, cotton, and horticulture products among others.
Construction value added is estimated from the index of cement sales and hence is a coincident indicator of construction activities. The industry recorded a growth rate of 7,7 percent during the second quarter of 2023.
The mining value added is measured by changes in the index of mineral production. The mining industry recorded a growth rate of 4,7 percent mainly on account of improved output for gold, nickel, coal, phosphates, and granite.
The statistics agency indicated that in the period under review, the top five contributing industries in terms of value added were wholesale and retail trade which contributed 18,6 percent, mining and quarrying 14,5 percent, agriculture 12,8 percent, manufacturing nine percent and finance and insurance 8,4 percent.
Experts continue to encourage local businesses to invest more in value addition and beneficiation and take advantage of various regional and international trade arrangements that offer broad markets for value added products.
The coming in of the African Continental Free Trade Area (AfCFTA) has also brought in the need to improve on value addition of goods so as to realise the benefits of the market. — chronicle
