A global-based company, Economic Intelligence Unit (EIU) says restored confidence in Zimbabwe Dollar and the Emmerson Mnangagwa led administration between 2021-24 will be key to the alleviation of spiraling country’s inflation.
This is according to the organisation’s outlook report gazetted on 9 October 2019.
According to the report, government’s efforts to resuscitate the economy will remain constrained by the ongoing political and economical crisis.
“Government reform efforts will remain constrained by the ongoing economic and political crisis, slowing progress on the staff-monitored programme (SMP) with the IMF, and complicating talks with the EU on good governance and economic development,” read the report.
It also predicts that while inflation will average at 165% in 2020, it is expected to fall 2021-24 as a result of improved confidence in local currency and government.
“The Economic Intelligence Unit expects inflation to average 165% in 2020, owing to shortages of basic goods and US dollars and sustained currency weakness. Inflation will fall in 2021-24 as confidence in the currency and the government is gradually rebuilt,” the report stated.
While on that trajectory, exports are also expected to rise during the same period.
“The ongoing drought will continue to constrain exports and necessitate imports in 2020. Exports will rise from 2021 as agricultural output picks up and power capacity is partially restored while rising domestic demand will push up imports in 2021-24.”
