Zim meets NDS1 targets under Economic Growth, Stability TWG
Nevanji Munyaradzi Chiondegwa
In line with SADC Macroeconomic Convergence Criterion, Zimbabwe continues to surpass economic performance targets as budget deficit declined from a target of 1.65 per cent to 0.9 per cent in 2022.
This was revealed by the Minister of Finance and Economic Development, Prof. Mthuli Ncube during a Cabinet meeting as he was presenting the National Development Strategy 1 (NDS1) Performance Report for the Fourth Quarter of 2022.
When NDS1 was launched in October 2020, fourteen Thematic Working Groups( TWG ) were created to drive the Programme and achieve set targets.
One of the TWG was Economic Growth and Stability, and the NDS1 target for inflation in the Fourth Quarter of 2022 under this TWG was 26.3 per cent. Government tightened the monetary and fiscal policy stance, maintained Central Bank accommodation rates at 200 per cent and ordered a review of public procurement process to ensure value for money payments to contractors.
The budget deficit declined from an NDS1 target of 1.65 per cent to 0.9 per cent, reflecting conformity with the SADC Macro-economic Convergence Criterion of fiscal deficits below 3%. A budget deficit occurs when expenses exceed revenue and can indicate the financial health of a country. It affects the national debt, the sum of annual budget deficits, and the cumulative total a country owes to creditors.
At the centre of inclusive growth during the Fourth Quarter of 2022 was the mining sector which grew by 10 per cent in 2022, driven by firm international commodity prices, the resuscitation of closed mines, expansion and opening of new mines especially in the gold and lithium sector.
Gold production in 2022 grew from 31.5 tonnes in 2021 to 36 tonnes. The establishment of Gold Service Centres such as Makaha in Mutoko made significant progress; and the manufacturing sector grew to an average of 66 per cent, surpassing the year’s target of 65 per cent.
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