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Deficit Spending Produces 800% Rise In Zimbabwe Domestic Debt


Zimbabwe's domestic debt has ballooned 800% since January to $Z127 billion, mainly through the issuance of treasury bills, Reserve Bank of Zimbabwe data show. The country's domestic debt was Z$14 billion in January of this year.

Economic analyst James Jowa says unsustainable public spending is fueling inflation and could stoke civil unrest. He said most workers including civil servants are under the poverty line and the government has difficulty providing essential services.

For more analysis of Zimbabwe's burgeoning government debt, reporter Blessing Zulu of VOA's Studio 7 interviewed Mufandaedza Hove, an opposition spokesman on economic issues and a University of Zimbabwe business lecturer.

More reports from VOA studio 7 for Zimbabwe...

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