Zimbabwe: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Zimbabwe

March 26, 2020

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Zimbabwe: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Zimbabwe, (USA: International Monetary Fund, 2020) accessed November 2, 2024

Summary

This 2019 Article IV Consultation focuses on Zimbabwe’s near- and medium-term challenges and policy priorities and was prepared before COVID-19 became a global pandemic that has resulted in unprecedented strains in global trade, commodity, and financial markets. It, therefore, does not reflect the implications of these developments and related policy priorities. The outbreak has greatly amplified uncertainty and downside risks around the outlook. The IMF staff is closely monitoring the situation and will continue to work on assessing its impact and the related policy response in Zimbabwe and globally. With another poor harvest expected, growth in 2020 is projected at near zero, following a sharp contraction in 2019, with food shortages continuing. With no progress on clearing longstanding external arrears, the authorities face a difficult balance of pursuing tight monetary, to reduce very high inflation, and fiscal policies to address the macroeconomic imbalances and build confidence in the currency, while averting a crisis. Pressures are mounting to increase spending on wages and for social protection to mitigate the impact of the weather shocks and high inflation. While the 2020 budget includes a significant increase in social spending, it is likely insufficient to meet the pressing needs.

Subject: Agricultural sector, Currencies, Economic sectors, Foreign exchange, Monetary base, Money, Public debt

Keywords: Africa, Agricultural sector, Climate shock, CR, Currencies, Currency, Debt, Global, Government, ISCR, Monetary base, Review government's shareholding, Sub-Saharan Africa, Zimbabwe, Zimbabwe dollar, Zimbabwean authorities, Zimbabwean government

Publication Details

Pages:

127
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/082
Stock No:

1ZWEEA2020001
ISBN:

9781513537726
ISSN:

1934-7685

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