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 (964 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

Chamisa needs to get on with the program now

by Charles Motsi | 23 September 2018 | 170 Views

The Church as seen by a Young Layman: Unmasking the darker side of modernity in Christianity

by Brian Maregedze and Tedious Ncube | 23 September 2018 | 89 Views

UNGA, an opportunity to tell the Zimbabwean story

by Tafara Shumba | 23 September 2018 | 74 Views

Zimbabweans in diaspora ready to build country

by Nobleman Runyanga | 23 September 2018 | 99 Views

Inter Africa bus in fatal head on collision

by Simbarashe Sithole | 23 September 2018 | 130 Views

Remembering Sidney Malunga

by Siphosami Malunga | 23 September 2018 | 117 Views

MDC Alliance council's grand corruption, shady deals exposed

by Staff reporter | 23 September 2018 | 135 Views

Chigumba lashes out at 'sore losers'

by Staff reporter | 23 September 2018 | 94 Views

Chiwenga launches African Dream boat

by Staff reporter | 23 September 2018 | 135 Views

Rogue cops run amok in Harare

by Staff reporter | 23 September 2018 | 139 Views

American investors express massive interest in Zimbabwe

by Staff reporter | 23 September 2018 | 108 Views

Prison boss willing to consider inmates conjugal visits

by Staff reporter | 23 September 2018 | 79 Views

Zanu-PF, Mines ministry officials grab gold mine

by Staff reporter | 23 September 2018 | 76 Views

Obert Mpofu denies growing rich off govt corruption

by Staff reporter | 23 September 2018 | 83 Views

Mnangagwa will not follow Mugabe's ways

by Staff reporter | 23 September 2018 | 87 Views

Extreme greed among MDC Alliance, Zanu-PF MPs shocking

by Staff reporter | 23 September 2018 | 82 Views

Chiwenga ordered army to be in the streets of Harare - Hwende

by Simbarashe Sithole | 23 September 2018 | 144 Views

Man bashes wife over cellphone

by Simbarashe Sithole | 23 September 2018 | 72 Views

ED set to address UNGA 2018

by Ashely Kondo | 23 September 2018 | 72 Views

Schools competition postponed due to cholera

by Stephen Jakes | 23 September 2018 | 70 Views

Mnangagwa lies about Gukurahundi commission, says Mathuthu

by Stephen Jakes | 23 September 2018 | 96 Views

Mnangagwa's message to Uncle Sam

by Staff reporter | 23 September 2018 | 90 Views

Its time to build Zimbabwe - Makamba

by Stephen Jakes | 23 September 2018 | 90 Views

Zimbabweans should brace for belt-tightening

by Staff reporter | 23 September 2018 | 81 Views

Mnangagwa needs the best brains Zimbabwe can produce

by Staff reporter | 23 September 2018 | 78 Views

Boost for Zimbabwe industry

by Staff reporter | 23 September 2018 | 70 Views

Crocodile Gang: 'Last man standing'

by Staff reporter | 23 September 2018 | 71 Views

ED explains to the world he is his own man

by Nobleman Runyanga | 23 September 2018 | 65 Views

Zanu-PF has stabilised

by Dr Obert Mpofu | 23 September 2018 | 69 Views

GMB boss arrested over $1m

by Staff reporter | 23 September 2018 | 72 Views

Govt moves into bulk fuel imports

by Staff reporter | 23 September 2018 | 51 Views

Mnangagwa's game-changing appointments

by Staff reporter | 23 September 2018 | 60 Views

New rules for Zimsec exams

by Staff reporter | 23 September 2018 | 57 Views

Zimbabwe roadblocks to continue

by Staff reporter | 23 September 2018 | 61 Views

Council bank for Bulawayo

by Staff reporter | 23 September 2018 | 58 Views

Foreign Bulawayo mayor calls on councillors and residents to unite

by Staff reporter | 23 September 2018 | 47 Views

'Production costs push price of bread up'

by Staff reporter | 23 September 2018 | 49 Views