Economist and Army Speak With One Voice on Zimbabwe’s Economic Situation

Image Credit: Daily Express

Economists and the Zimbabwe National Army (ZNA) all agree that the country has not been progressing well since ZANU-PF took control of the nation in 2013.

Commander in Chief of ZNA Constantino Guveya Dominic Nyikadzino Chiwenga said that as a result of squabbles within the ranks of Zimbabwe’s ruling party ZANU-PF, there has been no meaningful development in the country for the last past five years.

“The resultant economic impasse has ushered-in more challenges to thew Zimbabwean populace such as cash shortages and rising commodity prices,” said Chiwenga

Professor Steve Hanke who was contributing to Forbes magazine said that the country is currently experiencing hyperinflation for the second time after 2007-2008 economic woes.

Hanke like Chiwenga also pointed finger at ZANU-PF for the economic problems facing the country.

“When Former President Robert Mugabe’s party, ZANU-PF, regained control in Zimbabwe in 2013, government spending and public debt surged, resulting in economic instability.,” said the Professor.

Hanke who also argues that Zimbabwe’s annual inflation rate is currently at 348% said the ZANU-PF led government created a “New Zim dollar” to finance its deficits.

Zimbabwe’s Gross Domestic Product is expected to grow at 2.8 percent according to the International Monetary Fund. Zimbabwe’s economy has not been doing well as the country is experiencing cash shortages.

World Bank Senior Country Economist for Zimbabwe, Johannes Herderschee said that the problem is that the fiscal deficit for the struggling country is too large.

“Financing the deficit with an overdraft has destabilised the financial system leading to cash shortages and unpredictable payment of imports” said Herderschee in July this year.

The country’s government experienced a $1.4 billion budget deficit last year.

Currently, Zimbabwe’s economy seems to be scaring investors out of the country as the Zimbabwe Stock Exchange (ZSE) saw more foreigners selling their shares.


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