Staff Reporter

The Minister of Finance, Economic and Investment Promotion, Professor Mthuli Ncube delivered a comprehensive mid-year budget review yesterday in Harare which revealed Zimbabwe’s significant economic progress.

In a noteworthy highlight, Minister Ncube said that Zimbabwe’s month-to-month inflation remained stable at 0% in June, an improvement from -2.4% in May 2024.

“The stability in inflation can be attributed to tight monetary and fiscal policies by the authorities and stabilizing local currencies against major currencies. This stability contrasts with the U.S., where month-to-month inflation decreased to -0.3% in June from 0.1% in May 2024. The overall inflation rate for the period was recorded at 0.2%,” said the Minister.

Minister Ncube also added that financial performance indicators also showed positive trends.

“The volume of shares traded rose by 9.5% to $6.2 billion from January to June 2024, up from $5.6 billion during the same period in 2023. This growth was largely driven by the agricultural sector and export agencies, despite a loss in export assets. Foreign currency receipts have improved significantly, with the current account recording a surplus of $19.2 billion in the first half of 2024, a remarkable turnaround from a $13.8 million deficit during the same period last year,” Minister Ncube added

Minister Ncube also noted that in the financial sector, banking institutions have shown robust performance.

“As of February 1, 2024, all banks were adequately capitalized, with capital ratios four times the previous aggregates. The tier-one ratio was at 8%, and non-performing loans were maintained at a low rate of 2.2%, well below the 5% threshold,” stated the Minister.

Financial literacy programs have been actively rolled out, with plans to expand these initiatives in the second half of the year.

“Loans to women and youth have increased since 2022.Financial developments also saw the stock of reserve money rise to $626 billion in May 2024 from $6.5 billion in April 2024. Similarly, the gross money stock stood at $21 billion at the end of May 2024, reflecting a 5.9% increase from $10.8 billion recorded in April 2024,” Minister Ncube reported

Meanwhile, the mid-term budget review underscored Government’s commitment to fostering economic stability and growth through effective policy measures and strategic initiatives, setting a promising outlook for Zimbabwe’s economic future.