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Zimbabwe’s economic growth to fall in 2024. Here’s why

Published

1 year ago

December 1, 2023

Zimbabwe’s Finance Minister, Mthuli Ncube, has revealed that the country’s economic growth is expected to fall to 3.5% in 2024 from 5.5% this year.

The minister explained that the fall in crop yields during the 2023–2024 farming season is expected to be caused by an anticipated drought brought on by El Nino, a natural climate phenomenon in which surface waters of the central and eastern Pacific become unusually warm, causing changes in global weather patterns.

Ncube added that growth will be hampered by falling prices for mineral commodities. According to him, Zimbabwe’s budget deficit is predicted to be 1.2% of GDP at the end of the year, and annual inflation is predicted to drop from 20% in 2023 to 10%–20% in 2024.

“Going into 2024… fiscal restraint and tight monetary policy, together with a healthy current account position, provide the necessary conditions for currency and price stability,” Ncube said.

He suggested raising the toll on the busiest road in the nation, levying sugar-filled drink taxes, and instituting a wealth tax to improve revenue collection. To promote value addition, he added, lithium miners should submit refinery plans by March 2024. Africa’s top producer of lithium is Zimbabwe.

Zimbabwe’s economy has been fluctuating since the beginning of the year 2000. It has experienced episodes of hyperinflation which resulted in the depreciation of the national currency and the introduction of a multi-currency system in 2009. Its Real GDP growth remained high at 6.5% in 2022 from 8.5% in 2021 driven by a continued growth in agricultural production.

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”