Macroeconomic Forecast Zimbabwe

January 2007 | Macroeconomic Forecasts

The government presented its budget for 2007 late last year. As usual, the economic projections upon which the fiscal plan was based bear little connection with reality, and no doubt by mid-year a supplementary budget will be released revising all the budgetary figures for the worse. The latest inflation figure for November came in at 1098.8% (y-o-y), but the budget expects this to fall to 350% by H207. The local markets expect another currency redenomination soon, which will only add to the chaos of various classes of notes and 'bearer cheques' already in circulation. How the RBZ will manage a new issue of local dollars is really not clear: it seems that the government has stopped issuing new passports because it can no longer afford to print them on secure paper.

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