Thursday 18 October 2012

Much Much More Growth in 2013 for Zimbabwe

Zimbabwe's Treasury has predicted economic growth in 2013 will be 9%. It is interesting to remember just this year, the 2012 growth prediction (by Treasury) was slashed by Treasury officers in half-as it proved too optimistic. Consequently, this new prediction of 9% is seen as too-too optimistic, given structural weaknesses still plague the economy. Only The Tiger economies of Asia had growth rates of 8% plus in the nineties. These economies achieved quick growth, after investing billions in infrastructure through the 50's, 60's and 70's. The Great House of Zimbabwe has a decaying infrastructural base that has not been replaced from the days of the U.D.I. Just as Great Zimbabwe will need a major construction job to regain its former glory, Zimbabwe's superstructure needs a total overhaul to realise 9% growth. To realise the elusive 9%, after radical superstructural transformations in Zimbabwe, The World Economy itself has to already be of recession . Dodgy forecasting, like wishful thinking, does not generate economic growth.