IMF acknowledges Mnangagwa's efforts to stabilise economy



National Monetary Fund has acknowledged the commitment by Zimbabwean president Emerson Menon Gaga's government to stabilize Zimbabwe economy well it seeks to build sound economic policy and management in the landlocked country the fund has also revealed that these ABAB waste off monitored program were one for a year the Zimbabwean economy is projected to contract by 2 comma 1 percent in 2019 due to the impact of the ongoing fiscal consolidation the impact of cyclone edye as well as poor farming season the IMF however expects a rebound in 2020 this year was really the perfect storm we had unfortunate a lot of shocks that hit the economy I'm talking about the drought which I was he had an impact on agriculture I'm talking about the impact the drought also has on electricity generation we had the cyclone so we had a lot of shocks that hit the economy and that are beyond the control of the governments at the same time we're going through the fiscal adjustments bush by definition takes spending out of the economy we're also starting to implement the currency reform you know which is being put in place as we speak so this explains why this year is a very tough year but I think there is really I think there's a lot of confidence when I speak to the private sector when I speak to government officials and also I think in our assessment that the economy will start improving sometime next year next year hopefully we're not going to have a repeat of these exogenous shocks so I think you know you have to differentiate fundamentals from the psychology based on the fundamentals the economy is starting to stabilize things are moving in the right direction and so we should not see the reaction the questing' right now I think the reason we're seeing this reaction is more psychological okay there's a questioning by market participants why is the currency reform taking so long okay if it's in the interest of the country to have an exchange rate you know as we have our own currency and to have a convergence of the official and the unofficial rate why is it not taking place now why is it taking so long and my sense is it's early days the governor I think was very clear he's putting in place the technical preconditions and my senses we're moving in the right direction so hopefully the currency is going to start stabilizing Ave soon but this assumes that the government does the right thing and moves further in the reform past analysts however believe that the market is a clear indication of the rod that is taking place in the background and that the economy is in a worse situation that being reported we have an economy that's deep in recession far deeper in recession I think than the S&P shares the targets that are were in the trance the transitional tier mister escorted TSP in the TSP we're out of date that pretty much before they were published the idea that we'll be a middle-income country by 2030 is clearly nonsensical you just just do the numbers it can't happen so we're in in depreciation partly for the demand side the collapse of consumer spending due to falling disposable incomes falling real wages real wages are already at a five year low now they're being pushed even substantially lower others however see the political environment has to be corrected first we are a bit but it's not borne by the reality on the ground Zimbabwe is a broken country that's why we have to stand we are highly polarized we are not a united country even the government itself there is so much discord within the government itself so inherently if you there is no harmony you can't sing like an orchestra you can't play like Manchester City or Liverpool Oh Barcelona that play you know cause they know they understand each other so we don't understand each other's babbling we're just moving heckling from one you know from poster to pillar I mean without any you know real change until of outcomes so for us to get good outcomes we have to change the template the only way to change the template is to foster unity to foster a sense of harmony and cohesion amongst bubbles meanwhile the Reserve Bank of Zimbabwe will stop printing money as part of an IMF stuff monitoring program this is an attempt to deal with the country's ongoing currency crisis so fin when s ABC News




Comments
  1. Do.thy also acknowledge thy murdered pple anywhere black lives dont matter coz its black on black ryt.only foreigners thnk thy knw our situation we are way beyond book economics lets just watch IMF EU giv them money n see wat thy will do.wth it

  2. Thé Problème Es Every Africa National Nations Has To Many Doigts On Thé Food Assistant Currency Which Means If 1#food dollar es all Zimbabwe gouvernement produce per papier exchange And three coins That do Not exchange Within Zimbabwe National Currency Thé Coins Only To exchange unto Food Assistant Currency ! Rickel,Rollet,Ripple,Riviot,And Resium !

  3. You know its a sick joke when they say Zimbabwe economy to going to improve, only fools take IMF or the ZANU PF thugs at their word!!!

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