Macroeconomic Forecast Zimbabwe

June 2008 | Macroeconomic Forecasts

BMI View: Some local analysts believe that the true rate of inflation is now at least 1,000,000,000% and spiralling. As ever, the propelling force is massive state overspending funded almost entirely by unbacked monetary emission and government borrowing from the central bank, which has created a domestic public debt mountain last put at ZWD6.8 quadrillion. There are few official statistics still being issued, but business leaders now estimate unemployment at 90%, while in real terms household incomes have fallen to levels seen since the 1970s.

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