‘No prospects for Zim economic turnaround’

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ZIMBABWE’S economy will likely continue on a downward spiral due to poor policies which are causing instability in the country, a respected South Africa-based think tank has said.

The Oxford University-linked NKC African Economics (NKC) in its latest research instalment on Zimbabwe has ruled out any economic improvement in Zimbabwe in the short term.

“From our perspective, there is little prospect of a major improvement to Zimbabwe’s economic and financial challenges in the short- to-medium term and the measures in place designed to improve prospects are likely to have negative social consequences, with some risk to political instability,” read part of the NKC report.

According to NKC, there is a high possibility that the Zimbabwean government will not implement reforms this year.

“Major shifts in policy have followed (the late former Zimbabwean president) Robert Mugabe’s ouster, but the government has very little to show for these changes. A significant point that stood out is the IMF’s comment regarding the Staff Monitored Programme adopted in May 2019, which it says has deviated off-course.

“On the one hand, authorities need to address monetary imbalances and build confidence, while applying prudent fiscal policy on the other. Treasury, in the 2020 budget, was compelled to set aside a substantial amount towards social spending, but this will likely be insufficient to address Zimbabwe’s growing social needs….,” said NKC.

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