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Zimbabwe has adjusted its economic growth projection downwards due to the severe drought affecting crop yields, Finance Minister Mthuli Ncube announced on Wednesday. The country now expects economic growth of 2% for 2024, revised from the earlier forecast of 3.5% in November. The El Niño-induced drought has caused widespread crop failures, significantly impacting agriculture.
El Niño, a natural climate phenomenon causing warmer-than-usual Pacific waters, has disrupted global weather patterns. Zimbabwe, among the worst-hit in the region, faces severe agricultural losses. Neighboring Zambia and Malawi have declared states of disaster due to the drought.
Recently, the International Monetary Fund also lowered its growth forecast for Zimbabwe to 2% from 5.3% the previous year.
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“We are revising our growth targets downward for 2024 due to the deeper-than-expected impact on agriculture, but there is optimism for improvement next year,” said Ncube, forecasting a recovery to over 5% growth in 2025.
In May, the Zimbabwean government predicted a 72% decrease in staple maize production for the 2023/24 season. Ncube noted that the drought has severely affected agricultural output, necessitating the importation of 1.4 million metric tonnes of grain.
To alleviate food shortages, Zimbabwe received approximately $32 million in drought insurance from an African Union agency last week. The government has also appealed for international assistance to provide food aid.
Ncube is scheduled to present the mid-term budget review later this month.
