Analysts project positive 2021 economic outlook

By Rungano Dzikira

Economists have projected a positive 2021 economic outlook which will be characterized by stabilization of the exchange rate, in turn guaranteeing the return of the local currency as an acceptable currency.

Presenting a state of the economy report by Africa Economic Development Strategies, economist, Dr Gift Mugano said that the economy was posed for growth, at the back of a stabilised exchange rate, in the upcoming year.

“We have noted that the rate has stabilised… that there is stability is not debatable so the Zimbabwean dollar is coming back stronger next year.

“Notwithstanding the policy omissions, from a qualitative perspective, the 2021 economic outlook looks better than 2020 and will be characterised by a stabilisation of the exchange rate, which will guarantee the return of the local currency as an acceptable currency,” he said.

He added that production was also going to pick up hence strengthening the local currency, since confidence and stability in the Zimbabwe dollar are considered as the most important “stimulus” in the economy.

The just ended two year Transitional Stabilisation Programme (TSP) seems to have managed to bring about macro-fiscal stability and laid a solid foundation for private sector led growth.

Likewise, treasury has projected that annual inflation will consistently drop in line with the reduction in the month-on-month inflation from 31.7 percent in June 2020 to around five percent in the last quarter of 2020. According to the latest ZimStats figures, mid-August and mid-September saw monthly inflation falling to 3.83 percent.