Zimbabwe's Economic Forecast: Challenges and Rebounds Amidst Severe Drought
Zimbabwe's economic growth is forecasted to slow to 2% in 2024 due to the worst drought in 40 years, affecting southern Africa. However, growth is expected to rebound to 6% in 2025, driven by recovery in agriculture and manufacturing projects. The IMF highlights resilience despite current challenges.
![Zimbabwe's Economic Forecast: Challenges and Rebounds Amidst Severe Drought](https://devdiscourse.blob.core.windows.net/aiimagegallery/27_06_2024_13_11_05_2292549.png)
Zimbabwe's economic growth is projected to fall this year but could rebound in 2025, as southern Africa is hit by its worst drought in 40 years, the International Monetary Fund said.
Following a staff mission to the country, the IMF officials said late on Thursday that Zimbabwe's economy was on track to grow 2% in 2024, down from 5.3% last year. The government's forecast is higher, at 3.5% for 2024.
The economy remained resilient despite headwinds, but growth was expected to slow because of the drought, before recovering in 2025, the IMF staff team said in a statement. "Growth is expected to recover strongly in 2025 to about 6 percent, supported by a rebound in agriculture and ongoing capital projects in manufacturing," the statement said.
Some southern Africa countries are experiencing the worst drought in decades as a result of El Niño, impacting crop yields and causing damage to water and electricity supply. El Niño is a natural climate phenomenon in which surface waters of the central and eastern Pacific become unusually warm, causing changes in global weather patterns.
In May, the Zimbabwean government forecasted that staple maize production will drop 72% in the 2023/24 season.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
- READ MORE ON:
- Zimbabwe
- economic growth
- IMF
- drought
- 2024
- 2025
- agriculture
- manufacturing
- El Niño
- southern Africa
ALSO READ
Euro 2024: Spain thump three goals past Croatia to begin campaign on winning note
Lovlina Borgohain secures silver medal in Grand Prix 2024 competition
Italy concedes goal after 23 seconds but recovers to beat Albania 2-1 at Euro 2024
Marcus Stoinis: Australia's chase-master in T20 World Cups continues impressive run in 2024
Reserve Bank of India wins risk manager of the year award 2024