Zimbabwe’s largest listed company, Delta Corporation, says it recorded a 20 percent decline in sales between April and December 2014, a sign economists say indicates that the country’s economy remains in a fragile state with an unsustainably high external debt and massive deindustrialisation and informalisation.
In a statement released Tuesday, Delta Corporation said consumer spending which is traditionally higher in December was subdued.
Economists say government and private sectors’ failure to pay bonuses might have contributed to the drop in sales.
Economists say government and private sectors’ failure to pay bonuses might have contributed to the drop.
Finance Minister Patrick Chinamasa has announced in a government gazette that he has slashed the 2015 expenditure budget from the $4,1 billion to $3,5 billion.
Some economists are accusing the government of misplacing its priorities by ignoring industrial development. Last year for example, President Robert Mugabe’s office gobbled close to US$200 million, while economic ministries combined spent less than US$115 million.
Economist, Chris Mugaga of Econometer Global Capital said Delta Corporation’s problems are not surprising.
Meanwhile, permanent secretaries in various government ministries on Tuesday met a delegation from the Chinese International Cooperation Centre of National Development and Reform Commission in Harare to discuss economic co-operation between Zimbabwe and China.
The office of the president and cabinet is organizing the meeting. Zimbabwe and China last year signed what they dubbed mega deals to revive Harare’s economy but nothing has materialized.