Zimbabwe has lowered its economic growth forecast as the worst drought in decades devastates crop yields in southern Africa, the finance minister informed Reuters on Wednesday.
However, a rebound in growth is anticipated in 2025.
Economic growth is now projected at 2% for 2024, down from the 3.5% forecast made in November, due to widespread crop failures caused by an El Niño-induced drought, Finance Minister Mthuli Ncube announced.
El Niño is a natural climate phenomenon marked by a significant warming of surface waters in the central and eastern Pacific, leading to changes in global weather patterns.
The drought has dealt a severe blow to Zimbabwe, impacting crop yields significantly.
Nearby, Zambia and Malawi have declared states of disaster in response to the drought’s effects.
The International Monetary Fund recently projected that Zimbabwe’s growth would decline to 2% this year, down from 5.3% in the previous year.
“We are revising our growth targets downward for 2024 due to the greater-than-expected impact on our agriculture, but there is optimism for next year,” Ncube stated.
He added that growth is anticipated to rebound to over 5% in 2025. The Zimbabwean government anticipated a 72% decrease in staple maize production for the 2023/24 season when they made their projections in May.
According to Ncube, the agricultural output has been affected by the drought, and Zimbabwe anticipates importing 1.4 million metric tonnes of grain.
To alleviate hunger nationwide, Zimbabwe received approximately $32 million in drought insurance last week from an African Union agency.
The government has also called on international donors to provide assistance with food aid.
Later this month, Ncube will present the mid-term budget review.