Zimbabwe sees 2016 budget deficit nearly 800% higher than forecast
Harare — Zimbabwe’s economy will grow 0.6% in 2016, half the previous government forecast, but is expected to expand 1.7% next year, Finance Minister Patrick Chinamasa said in a budget speech on Thursday. The southern African nation is grappling with a devastating drought that has left more than 4-million people facing hunger, while the worst financial crisis in seven years has fuelled anti-government protests. Chinamasa told parliament in the capital, Harare, the economy was facing “a number of headwinds” that were restraining growth, and noted that “the fundamental challenge remains that of under-production, entirely across all sectors of the economy”. He said Zimbabwe expected its 2016 fiscal budget deficit to widen to $1.18bn — nearly eight times more than the forecast of $150m or 1.1% of GDP — and said it would be financed via domestic borrowing.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.