Zimbabwe: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Zimbabwe

IMF Staff Country Reports, April 8, 2022

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Zimbabwe experienced severe exogenous shocks during 2019-20: cyclone Idai, protracted drought, and the COVID-19 pandemic, which along with policy missteps in 2019, led to a deep recession and high inflation.
Real GDP contracted cumulatively by 11.7 percent during 2019-20.
Inflation reached 837 percent (y/y) by July 2020.
Reflecting good rainfall and relaxation of containment measures, real GDP rose by 6.3 percent in 2021.
A tighter policy stance since mid-2020 (relative to 2019) contributed to reducing inflation to 60.7 percent (y/y) at end-2021.
High double-digit inflation and wide parallel foreign exchange (FX) market premia persist.

The economic downturn and high inflation increased financial system vulnerabilities.
Extreme poverty has risen.
About a third of the population is at risk of food insecurity.

The international community seeks improvements in domestic political conditions and economic policies to initiate reengagement with Zimbabwe.
The authorities have started token payments to external creditors in a bid to revive international reengagement.

Subject: Arrears, Exchange rates, External debt, Foreign exchange, International organization, Monetary policy, Public debt
Keywords: Africa, anchor inflation expectation, anti-corruption strategy, Arrears, determined reform effort, Exchange rates, Global, IMF governance diagnostic, overarching policy priority, reintroduced Zimbabwe dollar, Southern Africa, Sub-Saharan Africa, Zimbabwean authorities

Zimbabwe: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Zimbabwe