Zimbabwe has the lowest inflation rate in the region - Report

A SADC economic report has revealed that Zimbabwe has the lowest inflation rate in the region, an indication that the economy is operating on stable conditions despite lack of capital.

Zimbabwe's inflation rate hovering at around 3,9 percent is below the average annual SADC inflation levels of 10 percent, according to the report.

However the report says that in spite of the low inflationary conditions, the economy is failing to create new jobs and facilitate the growth of industry owing to lack of capital.

Zimbabwe National Chamber of Commerce Vice President Davison Norupiri says government and the private sector must ensure that the single digit inflationary levels for the economy will result in increased productivity.

"What is now needed is to ensure that such conditions lead into stable macro- economic conditions," he said.

Zimbabwe has been experiencing stable macro-economic conditions following the introduction of a multiple currency system in January 2009 by the then Acting Minister of Finance Patrick Chinamasa.

The economy is however projected to achieve below a targeted growth rate of 9,4 percent this year due to persistent  liquidity constraints.