Open figure viewer
Subject
Zimbabwe economic outlook.
Significance
On November 26 Finance Minister Patrick Chinamasa presented the 2016 budget articulating the government's IMF-backed plan to clear the backlog of external debt arrears to international creditors. The aim is to normalise relations with Western donors after 15 years of isolation. The government faces a deepening employment crisis, an unfunded development plan and deflationary risks.
Impacts
The Labour Amendment Bill adopted in August will raise labour costs and discourage job creation.
Some deals signed during Xi's visit such as funding for fibre optic broadband may improve long-term competitiveness.
However, others such as an agreement for a new Chinese-built parliament will add to the debt load.
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2015
You do not currently have access to this content.
