Zimbabwe to grow by 4% next year, monthly inflation to remain below 3%

The Reserve Bank of Zimbabwe’s Monetary Policy Committee says Zimbabwe’s economy will grow by 4% next year and month-on-month inflation will be kept below 3% throughout.

Finance MInister Mthuli Ncube revised this year’s growth to 4%  when he presented his budget for 2023 and put that for next year at 3.8%.

Monthly inflation dropped from a peak of 30.7% in June to 1.8% last month while year-on-year inflation dropped from 285% in August to 255% last month.

The committee, however, kept the key interest rate at 200% and said this would be reviewed in the first quarter of next year ”as dictated by inflation developments”.
Zimbabwe is holding its harmonised elections next year in July or August. Populist policies to try and woo voters could, therefore, derail the current recovery, but some politicians, especially those from the ZANU-PF old guard have said President Mnangagwa has nothing to worry about and will win the elections even if he does not campaign.

Below is the full statement of the MPC:

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