Mining Sector Contribution to Economy

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The mining sector continues to power recovery with a projected growth of 47% in 2010, while agriculture, buoyed by increased tobacco output is forecast to record a growth of 34% in 2010. The mining sector contribution to the economy continues to grow and is expected to do so in the short- to-medium term.

 

The mining sector accounts for 65% of exports, up from 50% in 2009 and accounts for a third of imports. With exports projected at US$1.2 billion in 2010 and a nominal GDP estimate of US$6 billion, it is  implied that mining accounts for about 20% of nominal GDP.

 

The table below shows mining contribution to the economy:

 

2008

2009

2010*

Average

Mining Exports (US$ m)

680

670

1,300

 

Nominal GDP (US$ m)

5,100

5,400

6,000

 

% of GDP

13.3%

12.4%

21.7%

15.8%

Total Exports (US$ m)

1,400

1,500

2,000

 

Mining  share of Total Exports

48.6%

44.7%

65.0%

52.7%

Source: Ministry of Finance, 2010, *projections

 

The contribution of mining to real GDP is a function of the evolution of the GDP deflator. The Chamber of mines estimates this factor at no less than two thirds (to three quarters) of Nominal GDP and this implies that the mining contribution to real GDP cannot be less than 11% , compared to the official position of Zimstats that puts mining contribution to real GDP between 4-6%. .