Categories: Stories

IMF lowers Zimbabwe’s growth projection to 2.8 percent

The International Monetary Fund has lowered Zimbabwe’s Gross Domestic Product (GDP)’s projected growth to 2.8 percent this year and 2.7 next year on continued economic pressures.

In its regional economic outlook (sub Saharan Africa) released yesterday, the international financial institutions categories Zimbabwe as one of fragile countries in the region, alongside Burundi, Central African Republic, Comoros, DRC, Côte d’Ivoire, Eritrea, Guinea, Guinea-Bissau, Liberia, Madagascar, Malawi, São Tomé & Príncipe and  Togo

The IMF said consumer prices in Zimbabwe are likely to end this year at -1 percent and maintain the trend next year, signalling entrenched deflation.

Government expenditure as a percentage of GDP is seen ending the year at 29.1 percent rising to 29.5 percent in 2016.

IMF said Government debt as a percentage to the GDP is also seen high at 55.2 percent by the end of the year, spiking to 54.7 percent next year.

Trade balance on goods is seen ending at -19.6 percent of GDP and is expected to go up to -20.8 percent in 2016

Last week, the IMF said the continued decline in global commodity prices, fiscal challenges, and possible difficulties in policy implementation would weaken economic growth.

Local investment firm, Invictus early this month painted a gloomier picture of the economy, saying it could contract by four percent – its bleakest post-dollarisation outlook – weighed down by weak mineral prices and poor foreign direct investment flows.

Zimbabwe owes close to $10 billion in external debt, half of it in arrears and the country has not received financial support from the IMF, World Bank and African Development Bank since 1999.

The economy is also slowing down due to lack of foreign investment, electricity shortages and expensive loans. Cheaper imports are damaging local industry, forcing firms to close.-The Source

(305 VIEWS)

This post was last modified on %s = human-readable time difference 4:47 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024