Zimbabwe to grow at 27% yearly to reach Biti's $100bn target

Zimbabwe to grow at 27% yearly to reach Biti's $100bn target
Published: 08 May 2018 (952 Views)
MDC Alliance principal and former Finance Minister, Tendai Biti, has repeatedly claimed that, if elected into government, the opposition coalition would propel Zimbabwe to a $100 billion economy in eight years.

According to Zimfact, Biti told an MDC Alliance rally in Murehwa on March 24, 2018, that the $100 billion economy target could be reached in under eight years.

Zimbabwe's official 2018 budget statement, presented on December 7, 2017, estimates that the country's real gross domestic product was $14,5 billion. It projected real GDP to reach $15.2 billion this year.

Using the geometrical growth calculation formula, Zimbabwe's $15 billion economy, growing at 8 percent (or 8.5 percent for that matter), cannot possibly amount to $100 billion.

Instead, growing at 8 percent annually for the next eight years, the economy would grow to just under $28 billion.

The economy would need to grow at an astounding 27 percent per year, to expand to $100 billion in eight years.

Zimbabwe's economy has, in recent years, achieved double-digit growth. This was off a low base, following the end of a decade-long recession in 2009, when former President Robert Mugabe set up a power-sharing government with the opposition, a move which saw Biti assuming the finance minister's role.

Zimfact concluded that Biti's claim that an MDC Alliance government would build a $100 billion economy in eight years, at an annual growth rate of 8 percent, is premised on erroneous calculations.

It would require a growth rate of 27 percent to build the current GDP to the levels envisaged by the former finance minister. Alternatively, it would take 25 years, at 8 percent growth, for Zimbabwe's current GDP to reach $100 billion.


- zimfact

Tags: Biti, MDC, Alliance,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Knox Mutizwa wins August Goal of the Month award

by kickoff | 05 November 2018 | 858 Views

BREAKING: Gandawa on the run

by Staff reporter | 05 November 2018 | 1652 Views

Econet cannot distribute Kwese TV content to Zimbabwean viewers

by Staff reporter | 05 November 2018 | 1265 Views

Shoot-out robbers arrested

by Staff reporter | 05 November 2018 | 1300 Views

Mnangagwa ally warns economic saboteurs

by Staff reporter | 05 November 2018 | 1258 Views

Chamisa mobilises supporters for mass protests

by Staff reporter | 05 November 2018 | 1044 Views

LISTEN: Acie Lumumba speaks on how he got paid

by Staff Reporter | 05 November 2018 | 859 Views

Dzamara speak on Zanu-PF fights

by Mandla Ndlovu | 05 November 2018 | 830 Views

Minister Raj Modi Modi donates salary

by Mandla Ndlovu | 05 November 2018 | 704 Views

'I am a Trillionaire' Magaya says

by Mandla Ndlovu | 05 November 2018 | 1105 Views

Supermarkets to be blacklisted over cooking oil

by Mandla Ndlovu | 05 November 2018 | 710 Views

UK army to recruit from Commonwealth

by BBC | 05 November 2018 | 761 Views

Magaya opens up on arrest

by Mandla Ndlovu | 05 November 2018 | 754 Views

Kambarami is still 'Deputy Mayor'

by Mandla Ndlovu | 05 November 2018 | 619 Views

'Import ban must not go beyond December 21'

by Staff reporter | 05 November 2018 | 706 Views

Prophet Magaya puts fresh spin to arrest

by Staff reporter | 05 November 2018 | 713 Views

Chamisa's sign language interpreters get thumps up

by Staff reporter | 05 November 2018 | 699 Views

Mnangagwa to review Mthuli Ncube's 2% tax again

by Staff reporter | 05 November 2018 | 669 Views

Lumumba to be probed by ZAAC?

by Staff reporter | 05 November 2018 | 498 Views

Dzamara speak on ZANU PF fights

by Mandla Ndlovu | 05 November 2018 | 461 Views

Zimbabwe as a new gateway into Africa

by Minister of Finance Prof Mthuli Ncube | 05 November 2018 | 679 Views

Chiwenga's ex-wife looted millions

by Mandla Ndlovu | 05 November 2018 | 1061 Views

We are our own worst enemies

by Mapozho Saruchera | 05 November 2018 | 733 Views

Mnangagwa to deal with unexplained wealth and bank deposits

by Staff reporter | 05 November 2018 | 690 Views

WATCH: Chiwenga talks about Prophet Walter Magaya's lipstick

by Staff reporter | 05 November 2018 | 681 Views

Lumumba Saga takes new twist....War vets bay for Mutsvangwa's blood

by Mandla Ndlovu | 05 November 2018 | 751 Views

Chamisa demands Presidency

by Mandla Ndlovu | 05 November 2018 | 639 Views

Zimbabwean teachers miss out on New Zealand opportunity

by Staff Writer | 05 November 2018 | 585 Views

Zimbabwe to introduce e-provisional driver's exams

by Staff reporter | 05 November 2018 | 630 Views

Zimbabwe to supply water to South Africa

by Staff reporter | 05 November 2018 | 625 Views

Mnangagwa claims that 'good times will soon roll'

by Staff reporter | 05 November 2018 | 596 Views

Zimbabwe as a new gateway into Africa

by Hon. Prof Mthuli Ncube | 05 November 2018 | 681 Views

Chiyangwa appoint Karikoga Kaseke

by Staff reporter | 05 November 2018 | 598 Views

ZCTU demo: Ruling today

by Staff reporter | 05 November 2018 | 549 Views

Missing cop found dead

by Staff reporter | 05 November 2018 | 679 Views

Tagwirei marries long-time girlfriend

by Staff reporter | 05 November 2018 | 1045 Views

Zimbabwe relaxes maternity leave entitlement

by Staff reporter | 05 November 2018 | 640 Views

Zimbabwe to receive drugs, ambulances from India

by Staff reporter | 05 November 2018 | 563 Views