Mthuli Ncube Counts Covid-19 Cost On Economy

Zimbabwe’s construction industry looks set to be the hardest hit by the outbreak of the Covid-19 pandemic with an expected contraction of -11.4 percent, Finance and Economic Development minister Mthuli Ncube has said.

The tourism and distribution industry is expected to contract -7.5 percent, education (-7.2%), financial sector (-7.1%) and manufacturing (-10.8%) while the overall economy is now expected to contract by -4.5% in 2020.

However, there are some sectors which somewhat benefitted through increased demand, such as ICT, foodstuffs manufacturing and healthcare although health services provision was severely compromised.

Economies around the world have been devastated by the pandemic which continues to take its toll and to place a downward pressure on global economic growth.

“The lockdown was prescribed as a way to arrest the further spread of the pandemic and that way saving lives and livelihoods. However, these interventions inevitably had a negative impact on economic activity, with the large informal sector affected most severely,” Ncube said in an address to the 26th Intergovernmental Committee of Senior Officials and Experts (ICSOE) of Southern Africa meeting. Bulawayo24