IMF Downgrades Zimbabwe’s Growth Forecast

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The IMF forecasts weaker growth this year in part due to weak commodity prices in Zimbabwe.The Bretton Woods institution also cites patchy rainfall and company closures as a result of cheap imports and high interest rates.The country’s economy grew by 3.1 percent in 2014. The government forecasts growth this year of 3.2%, but analysts say weak commodity prices, patchy rainfall this season and company closures as a result of cheap imports and high interest rates will curtail the economy’s growth.The head of IMF review team on Zimbabwe, Domenico Fanizza, said on Tuesday that Growth has slowed down and it is expect to weaken further in 2015.The IMF says Zimbabwe needs credible plan to clear arrears EU resumes direct aid to Zimbabwe after a decade of sanctions
Zimbabwe’s foreign debt is $9-billion. It makes token monthly payments of $150 000 to clear $125-million in IMF arrears.The fund says the government can only gain access to new finance if it clears the arrears and presents a credible plan to clear outstanding payments to foreign creditors. Finance Minister Patrick Chinamasa said within the next year, Zimbabwe should be looking at paying off the arrear.

 

The fund says the government can only gain access to new finance if it clears the arrears and presents a credible plan to clear outstanding payments to foreign creditors. Finance Minister Patrick Chinamasa said within the next year, Zimbabwe should be looking at paying off the arrears. “Our intention is that by this time next year, we should be entering the new phase of clearing our arrears,” said Chinamasa at the same press conference with Fanizza.

 

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