Zimbabwe productivity should grow by at least 8-9 % per annum over the next eight years to achieve an ambitious upper middle income status set by government, the World Bank says.
The World Bank says the economy should also grow by a double digit until 2030 while inflation should be contained to single digits to achieve upper middle income status.
President Emmerson Mnangagwa’s government has set out to achieve an upper middle income country status by 2030 but with depressed growth rates, inflation among other factors, the target remains in doubt.
“Achieving such unprecedented rates of Zimbabwe will require dramatic improvement in the policy environment to address the binding constraints to productivity growth,” the World Bank said in a statement.
“To achieve the ambitious goal of becoming an uppe-middle income country by 2030, Zimbabwe will need to sharply accelerate productivity growth and ensure quality jobs,” according to the World Bank’s Zimbabwe Country Economic Memorandum (CEM) launched on Wednesday.
Zimbabwe is set to grow by under the revised 4.6% this year owing to inflation, a cut in government expenditure and depressed economic activity.
At current growth rates the World Bank says growth will be 3% per annual until 2030 unless dramatic changes are made to policy.
Investment has also been depressed at 10% of GDP, which remains critically low.
Meanwhile Finance Minister Mthuli maintains government is on course to achieve the ambitious target. But admits that wholesale changes to economic policy are required and indicated that the 2023 budget will present major structural adjustments to set economy on path to growth.