Zimbabwe’s real gross domestic product growth is projected to decelerate to 4.4 percent in 2012 due to limited capital sources, uncertainties arising from policy inconsistences, serious power shortages and dilapidated infrastructure.
According to the latest African Economic Outlook report compiled by the African Development Bank and its global partners, these challenges are worsened by fears over the controversial indigenization program and obsolete technologies and machinery.
“ ... And further compounded by contestations among the inclusive government of Zimbabwe partners around issues of the new constitution, the national referendum, as well as pending national elections,” said the report.
Real gross domestic product growth decelerated to 6.8 percent in 2011 from 9 percent in 2009 but is expected to improve to 5.5 percent in 2013.
Inflation is also projected to rise to 6.5 percent in 2012 and 6.7 next year, said the report.
The report further indicates that inflationary developments in the short to medium term will continue to be influenced by the US dollar and rand exchange rate, inflation development in South Africa, international oil prices and local utility charges.
Independent economist John Robertson said the projected GDP growth is off target.
Unemployment figures are also expected to go up as the nation struggles to recover from years of economic decline.