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Zimbabwe : WORLD BANK declines ZIMBABWE growth outlook

April 29, 2014

The World Bank declared that it has downgraded Zimbabwe s economic growth rate projection for 2014 from 4.2 to three percent, citing low investment levels and weaker than expected growth of the mining sector and poor global environment.

As per the Bretton Woods institution s Zimbabwe Economic Briefing for April, the southern African country s economic performance for this year would be weighed below by the carry-over effects of a 2013 slowdown that saw the economy expanding by 3.4 percent against a five-percent target. The World Bank informed that performance would also be affected by expected lower global demand for the country s key exports, vulnerability in the banking sector, policy inconsistencies affecting investment as well as weaker commodity prices and deflationary pressures.

The bank projects that return in the mining sector would remain controlled, with an approximated 3.3-percent growth in 2014 due to lower international prices and subdued investment. The global environment is supposed to affect the Zimbabwean economy through a stronger United States dollar, lower global demand for key exports, weaker commodity prices and reduced capital inflows to developing countries.

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Source: TendersInfo (India)

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