The International Monetary Fund has revised Zimbabwe’s growth for this year downwards from 6% to 5.1%. Zimbabwe says its economy will grow by 7.8%.
The Insider reports that the IMF also said inflation is likely to end the year at 92.5%. Inflation for September was pegged at 51.5%.
Zimbabwe’s inflation has been dropping steadily from 837.5% in July last year to 348.6% in December but rose to 362.6% in January before declining to 50.2% in August.
The Reserve Bank of Zimbabwe (RBZ) revised its inflation figures for the end of the year from below 10% to between 25 and 35%.
Inflation is rising following the siege on the Zimbabwe dollar which has now dropped to as much as $200 to the United States dollar against the auction rate of $90.08.
Analysts say the only solution is to dollarise but the government argues that there is no way the country’s economy can grow if the country dollarises. The government has set up a roadmap for de-dollarisation.
President Emmerson Mnangagwa believes his administration is steering the country back onto the growth path despite efforts by saboteurs to choke government efforts.
The business community argues that government policies are to blame for the present chaos. The Confederation of Zimbabwe Industries said on Wednesday:
Bad policy blurs the lines and results in criminal activity co-mingling with legitimate business survival decisions in a forex mispriced system.
CZI warns against arresting business leaders saying the move has the effect of instilling fear in stakeholders.
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