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World Bank: Political Uncertainty, Rising Budget Deficit to Cut Zimbabwe’s Economic Growth to 0.9%

FILE: International Monetary Fund Managing Director Christine Lagarde speaks at the annual meetings' plenary during the World Bank/IMF Annual Meetings in Washington, Oct. 13, 2017.

WASHINGTON — 

The World Bank says political uncertainty and the rising budget deficit will cut Zimbabwe’s economic growth to 0.9 percent this year.

That is down from an estimated 2.8 percent growth rate for Gross Domestic Product (GDP) last year.

In its latest Global Economic Forecast, the multilateral lender forecasts world GDP growth will average 3.1 percent this year, up from an estimated 3 percent last year. Much of the gain will be from emerging and developing economies, as commodity prices stabilize and domestic demand rises.

For sub-Saharan Africa, the bank expects average growth will be 3.2 percent. Growth next year could rise to 3.6 percent, the bank says.

But for Zimbabwe, the bank forecasts that GDP growth next year will be just 0.2 percent.

There are risks for African economies, however. The bank says the continent could be badly shaken by a slump in China. In addition, the burden of high foreign debt could undermine growth in many nations.