“We are not shrinking,” said Finance minister Mthuli Ncube, while giving an economic update at a press conference last Monday.
The minister said that while countries such as the United States, United Kingdom and South Africa were taking on more debt and companies were closing due to Covid-19, the same problems were not happening in Zimbabwe.
In fact, Ncube said he was “more bullish” about economic recovery now, compared to how he felt in the second quarter.
In that regard, it’s important that as Treasury is currently preparing the 2021 national budget, which is expected next month, to fact-check Ncube.
“Coming to the question that other countries are shrinking and that we are taking on more debt, no, we are not shrinking. I am not supposed to mention other countries. But I am going to. South Africa, US and UK, just those three, companies are shutting down because of Covid, but not in Zimbabwe,” said Ncube.
“Since we said companies can be opened, they are not shutting down. I am seeing that volumes are up, being maintained, or recovering. I am not seeing a similar pattern in companies shutting down. That is why our prognosis is that the impact of Covid, overall, on Zimbabwe is not as deep as in other countries.”
Facts
In a leaked letter to international financial institutions (IFIs) dated April 2, 2020, Ncube said the economy was expected to shrink by as much as 20% this year, owing to “domestic demand significantly depressed”.
