Finance Minister Mthuli Ncube expects the country’s economy to grow by nearly 10 percent in 2020 with per capita income rising to $2 081, according to his Transitional Stabilisation Programme launched today.
Ncube, who has received a lot of flak for some of the austerity measures he has introduced, says the economy will grow by 6.3 percent this year and by 9 percent next year, rising to 9.7 percent in 2020.
Per capita income which stood at just over $900 last year is expected to almost double to $1 720 this year and increase to $1 883 next year and on to $2 081 in 2020.
Zimbabwe is planning to become a middle income country by 2030 with a per capita income of $3 500.
It has already revised its Gross Domestic Product from $18 billion to $25.8 billion. The GDP is expected to grow to $28.9 next year to $32.8 in 2020.
The main drivers will be agriculture which is expected to grow by 12.4 percent this year but will decline to 9.4 next year before recovering to 16.2 in 2020.
Mining which is expected to grow by 26 percent this year will contribute less and less dropping to 16.1 next year and 15.3 the following year.
The contribution from construction will also decline from 14 percent this year to 12.3 percent next year and 12 percent after that.
Distribution, hotels and restaurants will play an increasing role with contribution rising from 6 percent to a staggering 19.5 percent before declining to 13.5 percent.
The most dramatic change will, however, be from the financial, banking and insurance activities sector. Its contribution will rise from 1.5 percent this year to 12 percent next year and on to 13.9 percent in 2020.