The national treasury has announced that the economic growth projections for 2024 have been cut to 2%, down from the previously anticipated 3.5%.
Minister of Finance, Economic Development, and Investment Portfolio Mthuli Ncube presented the updated figures before parliament today, attributing the reduction to the severe impact of the El-Nino induced drought on agricultural output.
“The domestic economy is now expected to grow by 2% in 2024, 1.5% below the 2024 National Budget growth projection of 3.5%,” Hon Ncube said
He also highlighted the challenges faced by the agriculture sector due to adverse weather conditions.
The downward trend is not limited to the domestic economy.
The growth projection for the Sub-Saharan African economy in 2024 has also been revised, now expected to be 3.8%, down from the earlier forecast of 4%.
Weak weather conditions and supply chain bottlenecks are cited as key factors for this adjustment.Additionally, the treasury has announced a conversion of the 2024 national budget to ZiG87.9 billion from Z$58.2 trillion, reflecting the country’s ongoing currency exchange trajectory.
This adjustment aims to stabilize the economy and align the national budget with the current fiscal realities.