Finance and Economic Development Minister Mthuli Ncube has assured the nation that by the end of 2019 the country’s economic reforms will have been completed and the country will be back on its feet.
In a publication by weekend state media, Mthuli Ncube said that the current tough austerity measures will have scaled down by year end and the country will be flourishing once more.
“Really, the major macro-economic policy adjustments we are coming towards the end of that and really my view is that within the year 2019 we should be able to complete all the major adjustments.
“And then beyond that, we put those behind us then we focus on jobs, productivity and competitiveness to see how we can focus these on the micro- economy so that we can lay the foundation for real prosperity going forward, having concluded all the major macro-economic adjustments” the finance minister said.
Minister Ncube has previously said that while the reform agenda let loose the inflation scourge, underlying factors for high inflation were already in place only waiting for a trigger to bolt away.
He, however, indicated from the outset his reform initiatives, dubbed austerity measures, would inevitably cause suffering among citizens, but remained necessary to correct ills of the past.
Frankly, his interventions have already started bearing results and for the first time in a long period Treasury has consistently posted primary budget surpluses since November 2018.
Treasury recorded a primary budget surplus of $803,6 million between January and June 2019 on the back of fiscal discipline in line ministries and government, as the TSP initiatives start to bear fruit.
And between January and March this year, Zimbabwe registered a positive current account balance of US$200 million, also the first since dollarisation in 2009, which provides signs that the country’s macro-economic fundamentals are falling in place.
Although Zimbabwe remains largely trapped in the throes of high inflation, it has recently experienced relative price stability, seen official and parallel market rates converge, is starting to see shorter fuel queues, growing foreign currency balances in the banks and witnessing improved access to forex by companies on the interbank.
Minister Ncube stated in his macroeconomic reform document, Transitional Stabilisation Programme, that the prevailing environment of macro-economic imbalances presented constraints to rapid economic development, as public deficits fuel unsustainable.
The Treasury chief noted that large fiscal borrowing requirements and money supply growth, in the process consumed scarce foreign reserves and undermining currency stability.
The fiscal deficit, a major cause of macro-economic instability and financial sector vulnerability, was estimated at US$1,4 billion at the close of the first half of 2018, and was projected at over US$2,7 billion in the absence of corrective measures being taken.
Annual growth in money supply to May 2018 stood at 40,8 percent, from US$6,5 in 2017, underpinned by growth in domestic credit of 47,3 percent, mostly to Government. And so, these were some of the fiscal misnomers the minister sought to correct.
Presenting his 2019 midterm policy review statement last month Minister Ncube said a relentless commitment to full implementation of key macro-economic reforms, void of policy reversals and inconsistencies had, as intended, set a solid stabilisation base for triple “S” growth, which is strong, sustained and shared growth.
His sentiments were recently shared by ex-MDC-A parliamentarian and former Bulawayo legislator Mr Eddie Cross who said “The economy is about to turnaround.”