Correct key macroeconomic imbalances, Zim govt urged

Hard-pressed Zimbabwe needs to correct its political framework and the macro-economic imbalances that have seen investments wilt and exports tumble, top analysts said on Thursday.

Zimbabwe will grow by about 1% this year, according to economists' projections.  The key agriculture and mining sectors have suffered drought as well as low price conditions.

"To raise growth from its current medium term trend of 1–2%, Zimbabwe will need to correct key macroeconomic balances.
 




"Capital flows, including external borrowing and asset sales, are sustaining consumption growth by financing an unsustainably high current account deficit," Kipson Gundani, economist with the Buy Zimbabwe pressure and lobby group, said on Thursday.
He added that what little growth Zimbabwe has managed in the past few years has largely been "driven by consumption", while public and private investment has fallen significantly.
Other economists said Zimbabwe should focus on the primary problem that has afflicted the country, which is an uncertain political framework.
Pedzisai Ruhanya, director for the Zimbabwe Democracy Institute, said: "... the big problem Zimbabwe faces is the politics of the country and the uncertainty this is bringing."
President Robert Mugabe's Zanu-PF party is divided over his succession. The long-serving leader has not named a successor and is even preparing for fresh elections in 2018, despite being 92 years old.