Macroeconomic Forecast Zimbabwe

November 2007 | Macroeconomic Forecasts

We have revised for the worse a number of forecasts including inflation and real GDP growth. It is impossible to get a real grasp of the numbers, not least because 80% of economic activity is now thought to take place in the unrecorded informal economy. Moreover, eclectic interventions by government distort the picture. For example, from November 23 businesses have been ordered to price all imported goods and input at the official exchange rate, which is forty times less than the rate they were actually sourced at. The result is that dualistic pricing of goods is now routine: little or nothing is available at the ticketed controlled price, but stock at the free market price can be had from the back door.

If you would like to subscribe to Southern Africa Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Southern Africa Monitor please click on the trial link below.