Despite pressing hardships, Govt claims Upper Middle Income Economy is within reach
Business Reporter
DESPITE rising hardships among the country’s citizenry, Zimbabwe authorities insist that the upper middle income economy is within reach.
Economic experts have since dismissed the growth data marketed by the Finance Ministry arguing that Finance Minister Mthuli Ncube policies failed to sustain the required 9% annual economic growth since 2019, making it impossible to claim that the Upper Middle Income Economy is now within reach.
Salaries among the working class have been appallingly at the least since independence with the majority of workers taking home an average of US$200 per month, way below the cost of living.
But speaking after Tuesday’s Cabinet meeting, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said the new GDP figures have also led to an increase in Gross Net Income (GNI), which rose from US$2,259 to US$2,859 in 2023.
“ZIMSTAT conducted the Economic Census for the year 2023 during the period 2024 and the first quarter of 2025,” said Dr Muswere.
“According to the results, the current Gross Domestic Product (GDP) has been revised to ZWL168.5 trillion, equivalent to US$44.4 billion from the initial estimate of ZWL133.7 trillion, equivalent to US$35.2 billion”.
He said the substantial increase in GDP is primarily attributed to improved coverage of economic activity. The improvement also reflects the inclusion of a larger number of business entities that have emerged since 2019, which is the previous base year.
“The new GDP figures have resulted in an improved Gross Net Income (GNI), which increased from US$2 259 to US$2 859 in 2023, and from the projected US$2 228 to US$2 893 in 2024.
“Per capita income is projected to surpass US$3 000 in 2025. Zimbabwe is therefore evidently making progress towards Upper Middle-Income status,” said Dr Muswere.
Speaking at the same occasion, Finance and Investment Promotion Minister Professor Mthuli Ncube was upbeat that an Upper Middle-Income status is within reach.
“In terms of the fiscal framework, we now have a GDP base figure for 2024, and that is what we will report in the midterm review at the end of the month.
“That is good progress towards the 2030 upper-middle income agenda that is now firmly in the middle income but in the lower income scale. To be Upper Middle-Income we should have a GNI of US$4 500 and we will get there,” said Prof Ncube.
