Some of Zimbabwe’s leading economists and economic analysts say reports by the International Monetary Fund (IMF) that the country’s economic growth has stalled vindicates their earlier prediction that the Bretton Woods institute’s earlier prediction of a Gross Domestic Product (GDP) growth of 2.8 percent was way off the mark.
The IMF last month revised slightly downwards Zimbabwe’s economic growth for 2015 to 2.8 percent from the initial 3.2 percent. But now in a statement released Tuesday, the IMF is saying Zimbabwe’s growth has stalled.
The IMF says, “Zimbabwe’s economic prospects remain difficult. Growth has slowed and is expected to weaken further in 2015. Despite the favorable impact of lower oil prices, the external position remains precarious and the country is in debt distress.”
It further says, “Key risks to the outlook stem largely from a further decline in global commodity prices, fiscal challenges, and possible difficulties in policy implementation. However, the authorities are committed to intensifying their efforts to ensure successful implementation of the program and to lay the ground for stronger, more inclusive, and lasting economic growth.”
Economist, Professor Tony Hawkins described as shocking the IMF claim that there is an improvement in the financial sector, saying there is instability in the banking sector.
Hawkins told Studio 7 that the IMF growth projection is too generous and owing to a decline in agriculture, mining and industrial production, predicted growth for the year will be between -2.3 percent.
Economist and founder of Econometer Global Capital, an economic think tank, Chris Mugaga says the ailing economy will grow by a mere 1.2 percent owing to political risk.
Director of the Labour and Economic Development Research Institute, Godfrey Kanyenze, said he projects a growth below 2 percent.