‘Economy requires ideal 8pc growth’
Finance and Economic Development Minister Patrick Chinamasa said the economy should grow at eight percent per annum for the next 10 years if the country is to realise meaningful economic revival.
He said GDP growth for 2014 was projected at 3,1 percent but the target could not be reached due to inherent liquidity shortages in the economy, coupled with low domestic savings, investment inflows and power supply deficits.
Minister Chinamasa said the projected 32 percent per annum growth for 2015 will not be enough for a robust economic revival.
He said a stable macro-economic environment, coupled with planned investments in agriculture, mining, communication and other infrastructural projects, including power generation and housing, will among others, spur growth.
“We projected a 3,2 percent growth rate . . . but for this country to be at its best we need to grow at about eight percent for the next ten years. We witnessed the lost decade and there is need for Government and private sector to correct the economic situation in a uniform way,” said Minister Chinamasa.
He said companies should emulate the likes of Schweppes Zimbabwe which have invaded the export market with quality and affordable products hence growing their earnings.
Minister Chinamasa said targeted growth rates under the Zimbabwe Agenda for Sustainable Socio-Economic Transformation of around 6 percent will require significant investment, foreign as well as domestic, in infrastructure, new equipment, and machinery and more modern technology.
“Such levels of growth remain inadequate for us to begin making a mark at the prevailing levels of capacity utilisation in the economy and high unemployment.
“It remains vital that we further strengthen our efforts towards addressing all the key constraints to rapid economic growth. These relate to improving the ease and cost of doing business in our economy, guaranteeing uninterrupted supply of adequate power, among others,” said Minister Chinamasa.
Global economic growth is projected at 3,8 percent in 2015, compared to the 3,3 percent in 2014.
The increase in growth will be driven by a rebound in both advanced economies and emerging markets.
In most advanced economies, the pace of economic recovery will be mixed across regions, with average growth of around 2,4 percent in 2015. — Financial Email News.