Zimbabwe: Economic Outlook for 2014 Remains Gloomy

(Page 3 of 3)

Economist Brains Muchemwa said economic prospects for 2014 remained uninspiring as the economy would likely be characterised by rising corporate bankruptcies, increasing unemployment levels and tight liquidity conditions that will dent hopes of reasonable growth above 3%.

He said the existing multiple currency regime would continue to render both fiscal and money policies blunt instruments to directly stimulate the economy.

"In the absence of these two very important interventionist policies, it is reasonable and indeed wise to conclude that the current auto-pilot mode that the economy is in will persist for some time," Muchemwa said.

Commercial Farmers' Union president Charles Taffs said government's projected 9% growth for agriculture in 2014 is unattainable largely due to unavailability of finance for farmers.

In an interview with our sister publication Southern Eye, Taffs said the projections were too ambitious and at most the sector could achieve 1% growth driven by the anticipated increase in tobacco production.

"To achieve the target, agriculture funding must be on the right footing, banks should first reignite funding of the sector and then we can even achieve 10% growth," Taffs said.

Ads by Google

Copyright © 2014 Zimbabwe Independent. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.