Possible election could dampen Zimbabwe growth outlook: AfDB
Harare, 05 Jan – (ANA) - Zimbabwe's projected economic growth in 2012 depends on a stable political environment which could be undermined if a contentious general election takes place, the African Development Bank (AfDB) said in a monthly review released today.
Finance Minister Tendai Biti expects the economy to expand by a further 9.4 percent in 2012 from a forecast 9.3 percent last year, mainly on the back of a rebound in agriculture and mining. Inflation is projected to average 5 percent this year.
The southern African country has been on a recovery path since 2009 when long-time ruler President Robert Mugabe agreed to share power with his rival, Prime Minister Morgan Tsvangirai, after disputed 2008 polls and in a bid to reverse a decade-long economic slump.
The AfDB said while international commodity prices would be key to Zimbabwe's economic growth prospects, internal policy decisions, such as Mugabe's drive to give control of foreign owned firms to locals, could hurt the economy.
"The on-going implementation of the indigenisation and economic empowerment laws and the expected national elections in 2012 continue to weaken external investor confidence," the AfDB said in its review of Zimbabwe's economy.
"The achievement of the 2012 projections is therefore subject to a stable political and economic environment ... and continued firming of the international commodity prices or increase in output." (ANA)
FA/ANA/05 January 2012-----------