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

Zimbabwe to grow at 27% yearly to reach Biti's $100 billion target
Published: 08 May 2018 (1025 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.

A less complex, if less precise but generally accepted, method to project growth is the rule of 70.

The rule of 70 is used to estimate the number of years it takes for a certain variable to double. To estimate the number of years for a variable to double, the number 70 is divided by the growth rate of the variable.

Therefore, using Biti's 8 percent growth rate, it would take nine years for Zimbabwe's GDP to grow to $30 billion, which is double the economy's current size.

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 | 693 Views

BREAKING: Gandawa on the run

by Staff reporter | 05 November 2018 | 1360 Views

Econet cannot distribute Kwese TV content to Zimbabwean viewers

by Staff reporter | 05 November 2018 | 1030 Views

Shoot-out robbers arrested

by Staff reporter | 05 November 2018 | 1067 Views

Mnangagwa ally warns economic saboteurs

by Staff reporter | 05 November 2018 | 1050 Views

Chamisa mobilises supporters for mass protests

by Staff reporter | 05 November 2018 | 862 Views

LISTEN: Acie Lumumba speaks on how he got paid

by Staff Reporter | 05 November 2018 | 705 Views

Dzamara speak on Zanu-PF fights

by Mandla Ndlovu | 05 November 2018 | 674 Views

Minister Raj Modi Modi donates salary

by Mandla Ndlovu | 05 November 2018 | 552 Views

'I am a Trillionaire' Magaya says

by Mandla Ndlovu | 05 November 2018 | 923 Views

Supermarkets to be blacklisted over cooking oil

by Mandla Ndlovu | 05 November 2018 | 584 Views

UK army to recruit from Commonwealth

by BBC | 05 November 2018 | 608 Views

Magaya opens up on arrest

by Mandla Ndlovu | 05 November 2018 | 605 Views

Kambarami is still 'Deputy Mayor'

by Mandla Ndlovu | 05 November 2018 | 480 Views

'Import ban must not go beyond December 21'

by Staff reporter | 05 November 2018 | 569 Views

Prophet Magaya puts fresh spin to arrest

by Staff reporter | 05 November 2018 | 564 Views

Chamisa's sign language interpreters get thumps up

by Staff reporter | 05 November 2018 | 544 Views

Mnangagwa to review Mthuli Ncube's 2% tax again

by Staff reporter | 05 November 2018 | 535 Views

Lumumba to be probed by ZAAC?

by Staff reporter | 05 November 2018 | 391 Views

Dzamara speak on ZANU PF fights

by Mandla Ndlovu | 05 November 2018 | 356 Views

Zimbabwe as a new gateway into Africa

by Minister of Finance Prof Mthuli Ncube | 05 November 2018 | 549 Views

Chiwenga's ex-wife looted millions

by Mandla Ndlovu | 05 November 2018 | 889 Views

We are our own worst enemies

by Mapozho Saruchera | 05 November 2018 | 598 Views

Mnangagwa to deal with unexplained wealth and bank deposits

by Staff reporter | 05 November 2018 | 577 Views

WATCH: Chiwenga talks about Prophet Walter Magaya's lipstick

by Staff reporter | 05 November 2018 | 554 Views

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

by Mandla Ndlovu | 05 November 2018 | 638 Views

Chamisa demands Presidency

by Mandla Ndlovu | 05 November 2018 | 528 Views

Zimbabwean teachers miss out on New Zealand opportunity

by Staff Writer | 05 November 2018 | 466 Views

Zimbabwe to introduce e-provisional driver's exams

by Staff reporter | 05 November 2018 | 501 Views

Zimbabwe to supply water to South Africa

by Staff reporter | 05 November 2018 | 503 Views

Mnangagwa claims that 'good times will soon roll'

by Staff reporter | 05 November 2018 | 486 Views

Zimbabwe as a new gateway into Africa

by Hon. Prof Mthuli Ncube | 05 November 2018 | 543 Views

Chiyangwa appoint Karikoga Kaseke

by Staff reporter | 05 November 2018 | 485 Views

ZCTU demo: Ruling today

by Staff reporter | 05 November 2018 | 435 Views

Missing cop found dead

by Staff reporter | 05 November 2018 | 558 Views

Tagwirei marries long-time girlfriend

by Staff reporter | 05 November 2018 | 856 Views

Zimbabwe relaxes maternity leave entitlement

by Staff reporter | 05 November 2018 | 518 Views

Zimbabwe to receive drugs, ambulances from India

by Staff reporter | 05 November 2018 | 438 Views