{
  "title": "Zimbabwe: 2019 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Zimbabwe",
  "publication": "IMF Staff Country Reports, March 26, 2020",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2020/03/19/zimbabwe-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-49283",
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  "summary": "This 2019 Article IV Consultation focuses on Zimbabwe’s near- and medium-term challenges and policy priorities and was prepared before COVID-19 became a global pandemic that has resulted in unprecedented strains in global trade, commodity, and financial markets.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- The 2019 Article IV Consultation assesses Zimbabwe’s near- and medium-term challenges and policy priorities.\n- The report was prepared before COVID-19 became a global pandemic and therefore does not reflect the implications of the pandemic or related policy priorities.\n- The outbreak has greatly amplified uncertainty and downside risks around the outlook; IMF staff are monitoring developments and assessing impacts and policy responses."
    },
    {
      "heading": "Economic outlook and risks",
      "content": "- With another poor harvest expected, growth in 2020 is projected at near zero, following a sharp contraction in 2019, with food shortages continuing.\n- No progress has been made on clearing longstanding external arrears, increasing vulnerability to external shocks.\n- The outbreak of COVID-19 has resulted in unprecedented strains in global trade, commodity, and financial markets, amplifying downside risks to Zimbabwe’s outlook."
    },
    {
      "heading": "Macroeconomic imbalances and policy trade-offs",
      "content": "- Authorities face a difficult balance between:\n  - Pursuing tight monetary policy to reduce very high inflation, and\n  - Pursuing tight fiscal policy to address macroeconomic imbalances and build confidence in the currency,\n  - While averting a crisis.\n- Pressures are mounting to increase spending on wages and for social protection to mitigate the impact of weather shocks and high inflation.\n- The 2020 budget includes a significant increase in social spending, but it is likely insufficient to meet pressing needs."
    },
    {
      "heading": "Key policy implications and priorities (as presented)",
      "content": "- Restore confidence in the currency through appropriate monetary and fiscal consolidation.\n- Address macroeconomic imbalances while managing liquidity and inflation pressures.\n- Mobilize resources and prioritize social protection and wages to mitigate immediate humanitarian and economic impacts from poor harvests and high inflation.\n- Resolve longstanding external arrears to reduce vulnerability to external shocks and improve access to external financing.\n\nInternational Monetary Fund. Zimbabwe: 2019 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Zimbabwe.\n\n---\n\n Content in this bundle\n\n- 1zweea2020001\n  - 1zweea2020001 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1zweea2020001 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: March 26, 2020",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513537726.002",
    "The 2019 Article IV Consultation assesses Zimbabwe’s near- and medium-term challenges and policy priorities.",
    "The report was prepared before COVID-19 became a global pandemic and therefore does not reflect the implications of the pandemic or related policy priorities.",
    "The outbreak has greatly amplified uncertainty and downside risks around the outlook; IMF staff are monitoring developments and assessing impacts and policy responses.",
    "With another poor harvest expected, growth in 2020 is projected at near zero, following a sharp contraction in 2019, with food shortages continuing.",
    "No progress has been made on clearing longstanding external arrears, increasing vulnerability to external shocks.",
    "The outbreak of COVID-19 has resulted in unprecedented strains in global trade, commodity, and financial markets, amplifying downside risks to Zimbabwe’s outlook.",
    "Authorities face a difficult balance between:",
    "Pressures are mounting to increase spending on wages and for social protection to mitigate the impact of weather shocks and high inflation.",
    "The 2020 budget includes a significant increase in social spending, but it is likely insufficient to meet pressing needs.",
    "Restore confidence in the currency through appropriate monetary and fiscal consolidation.",
    "Address macroeconomic imbalances while managing liquidity and inflation pressures.",
    "Mobilize resources and prioritize social protection and wages to mitigate immediate humanitarian and economic impacts from poor harvests and high inflation.",
    "Resolve longstanding external arrears to reduce vulnerability to external shocks and improve access to external financing.",
    "**1zweea2020001**"
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