The economy remains on a recovery path with the current government striving for a consistent upward trajectory of the economy.
The economy is expected to grow 4.5% in 2017 with mining, agriculture, tourism and a resuscitated manufacturing industry being key drivers of growth.
Since climbing out of deflation in February 2017, annual headline inflation has remained in the acceptable range to close the year at 3.46%, following a 1% average inflation for 2017.
According to IH Zimbabwe Equity Strategy 2018 research, the Command Agriculture programme was the main contributor to the stellar performance.
“The mining and service sectors, particularly tourism and communication also aided the economy’s growth while electricity generation, which kept electricity supply consistent aided the productive sector.
“The agriculture sector which was affected by an El-Nino induced drought in FY16 and recorded a 3.7% contraction is expected to have grown by 14.6% in 2017 on the back of Government coordinated interventions in partnership with the private sector.
“The Command Agriculture Program which was established by the government in the 2016/17 season was the main contributor to the sector’s stellar performance and this has been expanded to include Soya beans and livestock production which is expected to sustain the growth of the sector,” reads the report.
With the performances, the economy is expected to maintain its upward trajectory.
“The mining sector continued its growth momentum as it is expected to have grown by 8.5% in 2017, up from a growth rate of 6.9% in 2016.
“The Government expects the economy to maintain its upward trajectory as it has forecast a growth rate above 4.5% for the economy in 2018.
“This growth is premised on Government charting a new way forward with economic and investment recovery measures towards a “New Economic Order”, underpinned by a strengthening of cooperation with global partners,”reads the report.
The economy recovered strongly from 2016 levels (0.6% growth) to record 3.7% growth in 2017 outperforming the government’s initial forecasts of 1.7%.
This growth was underpinned by the government’s intervention in the 2016 and 2017 farming season through the Command Agriculture Program.
This resulted in a growth rate of 14.5% in the sector, albeit coming off a very low base (a 3.7% contraction).