Zimbabwe: 2009 Article IV Consultation-Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Zimbabwe
IMF Staff Country Reports, May 11, 2009
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- Zimbabwe: 2009 Article IV Consultation-Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Zimbabwe
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Bibliographic details
- Published: May 11, 2009
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451841527.002
Economic deterioration and context
- Economic and social indicators in Zimbabwe worsened significantly in 2008.
- Real GDP is estimated to have fallen by about 14 percent in 2008 owing to economic disruptions caused by hyperinflation and a further significant deterioration in the business climate.
- Causes cited: hyperinflation and a significant deterioration in the business climate.
IMF Executive Board reaction and program assessment
- Executive Directors welcomed the authorities’ Short-Term Emergency Recovery Program (STERP) that is based on sound principles of macroeconomic management.
- Directors underscored the importance of establishing fiscal discipline while ensuring the delivery of essential public services.
Key findings and policy emphases
- Findings:
- Real GDP decline: about 14 percent in 2008.
- Hyperinflation identified as a central driver of economic disruption.
- Policy emphases and recommendations:
- Implement STERP grounded in sound macroeconomic management.
- Establish fiscal discipline.
- Ensure continued delivery of essential public services while pursuing fiscal consolidation.
Subject classifications and keywords
- Subject: Central banks, External debt, Foreign exchange, International organization, Monetary policy, Money, Public financial management (PFM)
- Keywords: Africa, Budget planning and preparation, conditions in Zimbabwe, Currencies, donor financing support, Global, inflation expectation, low-inflation environment, Quasi-fiscal operations, US$ million, Zimbabwe dollar hyperinflation, Zimbabwean authorities