Siphakeme .Mnindwa
Judith Phiri, Business Reporter
ZIMBABWE’S Gross Domestic Product (GDP) grew by 2,37 percent to clock ZWG105,1 billion during the third quarter of the year 2024 when compared to ZWG102,6 billion recorded in the second quarter.
GDP refers to the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health.
The jump in GDP growth rates is consistent with the country’s tenaciously developmental trajectory being championed under President Mnangagwa’s leadership, which has seen the country withstanding macroeconomic hurdles to score significant milestones in different sectors of the economy.
In a Quarterly Gross Domestic Product (Q3) 2024 presentation, ZimStat’s National Accounts manager, Mr Grown Chirongwe said GDP growth rate for the third quarter (Q3) of 2024 was 2,37 percent compared to -0,63 percent in the second quarter (Q2) 2024.
“The total GDP for the third quarter 2024 stood at ZWG105,1 billion compared to ZWG102,3 billion in the second quarter 2024. This resulted in a quarter to quarter growth rate of 2,37 percent from Q2 2024 to Q3 2024,” he said.
He said in Q3, electricity recorded the highest growth rate of 22,2 percent, followed by accommodation and food services 19,0 percent and water supply, 9,9 percent.
Mr Chirongwe said in Q3, 2024, wholesale and retail trade, mining and manufacturing were the largest industries contributing, 18,02 percent, 15,15 percent and 12.50 percent to GDP respectively.
“The largest contributors to GDP in Q2, 2024, were wholesale and retail trade (18,09 percent) followed by Mining (14,58 percent), and Manufacturing (12,75 percent).”
In terms of month-on-month inflation rate, ZimStat Prices Statistics manager, Mr Thomas Chikadaya said the weighted month-on-month inflation rate was 1,1 percent in December 2024, shedding 1,1 percentage points on the November 2024 rate of 2,2 percent.
He said: “The month-on-month inflation rate is given by the percentage change in the price index of the reference month of a given year compared with the price index of the previous month. For the month of December 2024, the weighted consumer price index (CPI) for food and non-alcoholic beverages contributed mostly to the month-on-month change in index (inflation rate) by a magnitude of 1,0 percent.”
Mr Chikadaya said the USD month-on-month inflation rate was 0,6 percent in December 2024, gaining 0,5 percentage points on the November 2024 rate of 0,1 percent, while for the month of December 2024, the USD CPI for food and non-alcoholic beverages contributed mostly to the month-on-month change in index (inflation rate) by a magnitude of 0,6 percent.
He said the USD year-on-year inflation rate (annual percentage change) for the month of December 2024 as measured by the all items USD consumer price index (CPI), was 2,5 percent.
Mr Chikadaya added: “The ZWG month-on-month inflation rate was 3,7 percent in December 2024, shedding 8,0 percentage points on the November 2024 rate of 11,7 percent. For the month of December 2024, the ZWG CPI for food and non-alcoholic beverages contributed mostly to the month-on-month change in index (inflation rate) by a magnitude of 1,6 percent.”
He said the food poverty line (FPL) for one person in December 2024 was ZWG805,95, and this represents the amount of money that an individual requires to afford a daily minimum energy intake of 2 100 calories.
ZimStat uses the consumer basket for an individual deemed to be poor to calculate the poverty line.
Mr Chikadaya said the total consumption poverty line (TCPL) for one person was ZWG1 156,67 in December 2024 and the TCPL was derived by adding the non-food consumption expenditures of all individual below the FPL.
