The preliminary report on the Mid-year fiscal policy review to be presented by Finance and Economic Development Minister Mthuli Ncube next Wednesday confirms that the country is heading towards macro-economic stability, Cabinet has revealed.
Addressing press Wednesday morning, Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa said progress was attributed to recent fiscal reforms taken by the government.
“Cabinet considered the preliminary report by Minister of Finance on the 2019 Mid-year fiscal policy review. The fiscal policy review confirmed the position that as a consequence of the reform measures being undertaken by the government. The country’s economy was now heading towards macro-economic stabilization,”
“However the more comprehensive presentation on the subject matter would be made to Parliament during the Minister’s mid-year fiscal review and supplementary budget statement which is scheduled to take place on the 31st of July 2019,” said Mutsvangwa.
However, this comes at a time there is widespread negative sentiment over the country’s economic state of affairs which is being aggravated by 16-hour-long power cuts, fuel shortages and hyperinflation among notable issues.
Already, the World Bank has raised red flags on the country’s growth prospects for 2019 which continue to be weighed down by a combination of worsening inflationary pressures and shortages of energy hindering production.
This is despite the fact that the bank had earlier anticipated growth in the region of 3.7 for the year.
But the government is seemingly adamant of progress as it continues to seek for answers to address the macro-economic headwinds.
Energy and Power Development Minister, Fortune Chasi is currently in South Africa for negotiations with Eskom in a bid to find a solution to the electricity stalemate.
Government has also highlighted that as of yesterday, 40 million liters of fuel is being pumped at Msasa fuel depot.
“A total of 40 million liters of combined fuel product is currently being pumped in to the country,” acting Energy and Power Development Minister Sekesai Nzenza said.
However, analysts are skeptical of growth this year, instead they are forecasting a decline in growth, increase in inflation and unemployment rate spiral, thus stagflation.
“Once stagflation starts, it is extremely difficult to stop as most policy interventions have adverse outcomes for the economy. The economic conditions in Zimbabwe present challenges to minority and fiscal authorities,” economic analysts, Victor Bhoroma said.