World Bank: Zimbabwe GDP up sharply in 2010

Written by Editor Monday, 25 January 2010 09:36

The World Bank says Zimbabwe's GDP is set to register strong growth in 2010 as the economy looks to recover lost ground after more than a decade of sharp decline.

The Zimbabwe economy is set to expand by 7.1 percent in 2010.

The figures back those forwarded by Zimbabwe Finance Minister Tendai Biti who told Parliament that he believed the economy would grow by 7% in the 2010 fiscal year.

The figures mean Zimbabwe is set to register the highest growth rate in the Southern African region for 2010 and 2011, with neighbouring Botswana’s economy set to grow by 4.8 percent in the current year and 5.6 percent the year after according to the report.

The World Bank’s Global Economic Prospects Report for 2010 says that the sharp rebound in economic activity in Zimbabwe will however likely slow down to 6.3 percent in 2011.

These projections are of course based on the assumption that the political climate in Zimbabwe remains stable for the duration of this time.

The news will be a relief to Zimbabwean's who have in, economic terms, endured their own version of the 'Great Depression'* over the course of the past decade.

Between 2000 and December 2007, the national economy contracted by more than 40% - and according to the Cato Institute inflation stood at around 80 sextillion(1021)% by mid-November 2008 when measurements ceased.

Further details of World Bank outlook for Southern Africa and Zimbabwe

“The economy of Botswana, the world’s biggest diamond producer, would probably expand 4.8 percent this year, rebounding from an estimated 8.3 percent contraction last year,” the World Bank said.

Africa’s largest economy, South Africa will only expand by 2 percent this year and 2.7 percent in 2011 according to the report.

The World Bank says sub-Saharan Africa’s economy would expand 3.8 percent this year due to the slowdown in the global recession although unemployment was likely to limit the growth.

“In most of the countries, unemployment will increase further which might limit growth prospects in sub-Saharan Africa as export demand eases, while consumer spending in the region remains weak,” said the Bretton Woods institution.

“The overall strength of the recovery will depend on the growth performance in key export markets and investment partners, particularly the US, the European Union, and China,” the report added.

The recovery in sub-Saharan Africa “is projected to be modest and fragile”.


* The international publication 'The Economist' defines a depression as based on two general rules: 1) a decline in real GDP exceeding 10%, or 2) a recession lasting 2 or more years.