Zimbabwe: 2000 Article IV Consultation—Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; Statement by the Executive Director for Zimbabwe and Statement by the Authorities of Zimbabwe
IMF Staff Country Reports, January 8, 2001
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- Zimbabwe: 2000 Article IV Consultation—Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; Statement by the Executive Director for Zimbabwe and Statement by the Authorities of Zimbabwe
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Bibliographic details
- Published: January 8, 2001
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451841428.002
Summary
- Fiscal profligacy, an erosion of competitiveness, and governance problems have undermined investor confidence and curtailed access to foreign financing in Zimbabwe.
- The new economic team has taken steps in devaluing the currency and raising the awareness of public opinion about the size of the fiscal deficit and its root causes.
- Steadfast implementation of strong policies, backed by a broad domestic consensus, will help restore Zimbabwe's status as an anchor of stability and prosperity in southern Africa over the medium term.
Key findings and themes
- Fiscal profligacy is a central contributor to economic instability in Zimbabwe.
- Loss of competitiveness has weakened external viability and investor confidence.
- Governance problems have further curtailed access to foreign financing.
- Policy measures already taken include devaluing the currency and publicizing the fiscal deficit and its root causes.
Policy implications and recommendations
- Implement strong policies consistently to restore investor confidence.
- Build a broad domestic consensus to support policy implementation over the medium term.
- Address fiscal deficits transparently to improve public awareness and credibility.
Subject classifications and keywords
- Subject: Arrears, Banking, Budget planning and preparation, Credit, Economic sectors, External debt, Foreign exchange, Health, HIV and AIDS, Public sector
- Keywords: Africa, Arrears, authorities' hope, authority, CR, deficit, government, HIV and AIDS, ISCR, land reform, land resettlement program, Public sector, Southern Africa, Staff comment, Zimbabwean authorities