IMF confirms our worst fears

HARARE - The International Monetary Fund (IMF) this week confirmed what we have been saying all along — Zimbabwe is now officially in recession due to President Robert Mugabe’s disastrous policies and mismanagement.

In its latest World Economic Outlook report, the IMF slashed Zimbabwe’s 2016 growth projection further to –0,3 percent from the current 1,4 percent and predicted that the country will experience full blown recession next year, slowing down to –2,5 percent.

The latest forecast will come as a blow to Mugabe’s government which is fighting hard to contain rising tension in the country emanating from a worsening economic situation and a drought that has left more than 5,5 million people in need of food aid.

The nonagenarian’s populist policies such as the disastrous land reform exercise and the controversial Indigenisation Act have resulted in low foreign direct investment, massive company closures, rising unemployment and serious power outages among other ills.

However, Mugabe, 92, continuously accuses the West for fuelling Zimbabwe’s economic challenges through targeted sanctions.

The latest IMF figures confirm that we are now in the throes of serious turbulent times, where escalating protests and rifts in the ruling Zanu PF party are eroding the tight grip that Mugabe has held since independence from white minority rule in 1980.

We are not prophets of doom, but chickens are now coming home to roost for Mugabe and his Zanu PF. The introduction of bond notes later this month will be the final nail on this economy.

We strongly believe that the new statistics will bring Mugabe’s government down to earth and realise that all is not well and if they continue in their denial mode, there will be no economy to talk about in the coming few months.

Oblivious of the worsening economic situation, Zanu PF recently came up with a new economic blueprint to revive the ailing economy.

The highly ambitious document seeks to boost output growth to almost 10 percent next year through agriculture and manufacturing, and by giving more people access to banking services.

The government is targeting an average annual growth rate of 6,6 percent between now and 2018, according to new documents from the Finance ministry.

The economy is projected to expand by 9,5 percent in 2017 and 8,9 percent 2018, according to the document.

However, these projections are not only unrealistic but are totally hogwash as the country is currently experiencing a liquidity crisis that has led to limits on daily cash withdrawals and also resulted in civil servants being paid late last month.

Comments (2)

ZRP Traffic Dept is the the only government department that could achieve the 9.5% by 2017 and 8.9% by 2018 unfortunately 200% of that income will be pilfered. It is high time the zanu pf government threw in the towel and resigned enmasse.

Daniel5 - 7 October 2016

The idiots who author these silly Zanu PF documents have now run out of ideas. Its the same idiots who promised 2m jobs. Figures are churned out to impress a failed, arrogant and economically clueless "leader" and equally mentally bankrupt "govt" in the ever growing insanity.

Sagitarr - 9 October 2016

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