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Zimbabwe public workers won’t be paid annual bonuses for two years due to falling revenues.

In another sign that the nation’s economy is struggling, the government says economic activity has been depressed, with more people working in the informal sector where they do not pay taxes.

The Zimbabwe government says it spends 82 per cent of total tax revenues on public salaries.

It has forecast growth this year of 3.2 per cent, but analysts say weak commodity prices, patchy rainfall and company closures will stifle economic growth.

Zimbabwe finances its entire budget from taxes after international lenders declined to resume lending to the country until it clears its global debts.