Economy in wait and see mood – OMIG

18 Sep, 2023 - 00:09 0 Views
Economy in wait and see mood – OMIG Old Mutual Investment Group (OMIG)

eBusiness Weekly

Tapiwanashe Mangwiro

The Zimbabwe economic outlook remains uncertain on expected policy continuity, which will be challenging amid a struggling economy, the latest report shows.

It comes after some participants of the recently conducted harmonised elections cast doubt over the credibility of the election results.

President Emmerson Mnangagwa this week appointed the new cabinet ministers, with some assuming their previous positions and others switching ministries.

“A generalised uncertainty clouds the outlook, with political economy undertones still dominating market themes. Resultantly, the market still presents a ‘wait-and-see’ atmosphere,” according to Old Mutual Investment Group (OMIG) latest monthly report.

OMIG states that the monetary policy area continues to be the centre of macroeconomic risk.

“Prevailing conditions present limited policy manoeuvrability beyond the multi-currency framework, thereby sustaining the status quo. From a low base, the medium to long-term outlook still presents considerable upside.”

Despite the recent exchange rate fluctuations, Reserve Bank of Zimbabwe Governor, John Mangudya, recently said the country’s domestic economic outlook remains robust, with projected growth for 2023 upgraded to 5,3 percent from the initial forecast of 3,8 percent.

Authorities hinted at the maintenance of a tight monetary and fiscal policy stance in order to maintain the economic gains that have been achieved so far.

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