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IMF to visit Zimbabwe next month

by Staff reporter
09 Jun 2024 at 04:10hrs | Views
The International Monetary Fund (IMF) is scheduled to visit Zimbabwe this month for its Article IV consultation mission amid concerns about the country's economic trajectory.

The mission will also evaluate the newly introduced currency, ZiG, and support efforts to restore macroeconomic stability. Local financial experts, like IH Securities, highlight challenges such as drought, falling commodity prices, and taxation laws affecting economic growth.

Forecasts suggest a significant slowdown, with growth rates revised downward. The El Nino drought has severely impacted agriculture, leading to food shortages and increased need for food aid.

Additionally, changes in taxation laws have affected business margins and competitiveness. Despite these challenges, some sectors, like consumer staples and transport, have shown volume growth. However, the full impact of the drought may be evident in future trading updates.

To address food insecurity, the government seeks significant funding for safety nets until 2025.

Meanwhile, housing and communication prices have risen slightly, while inflation rates are expected to remain low through managed money supply growth strategies.

Source - newzimbabwe