Thursday, 26 February 2015

A campaign not a policy

Here is what the African Economic Outlook say about the Zimbabwean economy

"Zimbabwe's economy remains in a fragile state, with an unsustainably high external debt and massive deindustrialisation and informalisation. The average GDP growth rate of 7.5% during the economic rebound of 2009-12 is moderating. This economic slowdown is due to liquidity challenges (e.g. the lack of and high cost of capital and revenue underperformance), outdated technologies, structural bottlenecks that include power shortages and infrastructure deficits, corruption and a volatile and fragile global financial environment"

PEOPLE AT THE ZANU-PF STAR RALLY IN MUTARE 
Since the introduction of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimASSET) what improvement has the country seen ? Is this blue print a failure or a success to the Zimbabwean economy?  These are the questions Zimbabweans have to ask before criticizing the economic blue print.

The zimasset economic blue print came as a campaign structure . Its use was to lure people to vote for the ruling party ZANU-PF . It is therefore problematic to initiate this policy as many many companies are closing down and corruption still at its highest peak.

The ZimASSET is an economic blue print that has been designed and unveiled by the government To view what the blue print says here is a link to it

Table 1: Macroeconomic indicators

20122013(e)2014(p)2015(p)
Real GDP growth4.43.743.7
Real GDP per capita growth1.70.60.90.7
CPI inflation3.74.143.6
Budget balance % GDP-1.3-1.9-1.9-2.2
Current account balance % GDP-20.1-18.5-16.9-14.4
Source: Data from domestic authorities; estimates (e) and projections (p) based on authors’ calculations.

This is the data that has been given by the   African Economic Outlook . The data does not show any improvement since the year 2012 . This comes back to the question above " Is this blue print a failure or a success to the Zimbabwean economy?

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