Zim Economy Shows Signs of Recovery – IMF

Friday, July 3, 2009 - 13:52

According to the IMF, the improved economic policies in Zimbabwe have led to a "nascent" recovery in the economy

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Re: Zim Economy Shows Signs of Recovery – IMF

By Kennedi

Sat 15 Aug, 2009 - 08:38

People are on the lookout for economic signs. Economic signs aren't normally paid attention to when things are boom, but are under the microscope when bust. DP, or Gross Domestic Product is a biggie. Home sales and house prices are also important, so are unemployment rates – and their declines have all slowed. Since most manufacturing (or production) has dipped, unemployment will continue to rise. (That's called Okun's Law, but its veracity is disputed.) Not many businesses have extra cash, or people for that matter. Most experts are predicting a recovery that will start soon, and complete by 2011. Despite the economic signs that the decline has slowed, many are out of work, and few easy loans can be had.

Improved economic policies in Zimbabwe have led to a "nascent" recovery in the economy. This is according to the International Monetary Fund (IMF).

The IMF, however, is of the view that the country must clear more than US$1.1 billion in arrears to creditors before it can qualify for IMF financial aid.

IMF mission chief to Zimbabwe, Vitaliy Kramarenko, noted that Zimbabwe will need to pay its arrears to the IMF, World Bank and African Development Bank, in order to get help from the donors.

Kramarenko says that public finances have benefited from the recovery in economic activity and consumption, and the government matched expenditure to revenue during January to May 2009.

To read the article titled, “Zim economy shows signs of recovery, says IMF,” click here.

Source:

<br /> Mail and Guardian

Article link:

http://www.mg.co.za/article/2009-07-03-zim-economy-shows-signs-of-recovery-says-...