Accessibility links

Breaking News

Economic Intelligence Unit Downgrades Zim's 2014 Growth Rate

The Economic Intelligence Unit says Zimbabwe’s economy will grow by only about 2.6 percent in 2014 instead of optimistic 6.1 percent projected by Finance Minister Patrick Chinamasa’s when he recently presented the country’s national budget.

The Unit provides a constant flow of analysis and forecasts on more than 200 countries.

In its latest report, it says there have been very few “signs of an altered policy direction following the contested victory of Robert Mugabe and Zanu PF in the August 2013 poll.”

The group says government has failed to address the fundamental problems in the economy and warns that investors are likely to remain wary.

The group concludes that growth will “remain muted.” Though Zimbabwe continues to struggle economically, other African countries are expected to grow significantly and these are South Sudan Sierra Leone, Libya, Eretria and Zambia.

Another report released Tuesday by the Econometer Global Capital, a consultant outfit, is also painting a gloom 2014 economic outlook for Zimbabwe.

The group says President Mugabe’s age and lack of a clear successor is also creating uncertainty.

It says corruption, a huge external debt and crisis in the banking sector are causing havoc in the economy.

Economist and founder of Econometer Global Capital, Chris Mugaga says why they see a 2.9 percent economic growth this year.

Meanwhile, Public Service, Labour and Social Welfare Minister Nicholas Goche says the government working on a new salary structure for civil servants that will see state employees being paid according experience, seniority and qualifications.

The minister told the state-controlled Herald newspaper that civil servant work grades were compressed in 2009 when the government introduced the multi-currency regime.

This move saw civil servants’ salary differences going down to as little as a dollar resulting in some turning down promotions without monetary gains.

The announcement comes a day before the much-awaited meeting between government and civil servants’ representatives to negotiate salaries and working conditions.