The International Monetary Fund (IMF) has outlined the current challenges facing Zimbabwe as a nation.
According to a recent post on Zimbabwe Economic Review’s X handle:
Economic Slowdown: Growth expected to decelerate to 2% in 2024 due to a devastating drought and higher import bills.
Macroeconomic Instability: Zimbabwean dollar depreciated by about 260% in the first three months of 2024.
Financing Gap:
2024 budget faces a significant financing gap due to Quasi Fiscal Operations-related debt, T-bills, weaker-than-expected revenues, and drought-related spending.
Debt and Arrears: Zimbabwe’s unsustainable debt situation and official external arrears preclude IMF financial support.
Governance Issues: Significant weaknesses in economic governance and high corruption risks.
Structural Reforms Needed: Ongoing need for improvements in the business climate, economic governance, and corruption reduction.
Public Debt Transparency: Need for continued adherence to high standards of public debt transparency, including appropriate treatment of new debt.
The role of IMF is to promote international monetary cooperation, exchange rate stability, and economic growth. That is through Surveillance , Financial Assistance , Research and Analysis and Poverty Reduction and Growth Facility (PRGF)
Source Newsreportzim.com
