Zimbabwe's economy set to shrink by 4.5% in 2020

By Shingai Nyoka

Zimbabwe’s economy is set to shrink by 4.5% this year, according to the latest government projection.

The forecast has changed from an earlier prediction of a 3% contraction.

Finance Minister Mthuli Ncube said the revision was because of a variety of factors, including the effects of a prolonged drought and the coronavirus pandemic. 

A global economic slow-down has seen a drop in demand for minerals from the country.

At the same time, the government is grappling with high annual inflation, which surged to 785% in June, and the local currency is sliding in value against the US dollar.

But the government projects inflation to drop to 300% by the end of year.

This article originally appeared on BBC News

Photo: AFP