Strong prospects for resurgence run into the sand

The ability of Zimbabwean authorities to tackle a stubborn economic crisis came under the microscope on Tuesday as a new report revealed graphic details of the headwinds that continue to hinder a “much solid” economic recovery.

The bulk of handicaps confronting Zimbabwe’s economy are internal, according to a report by advisory firm Morgan&Co, which discounts official propaganda blaming external forces for fuelling the crisis.

In the report that attempts to make out the outlook following a string of hasty interventions by firefighting authorities in the past few months, Morgan&Co still tipped Zimbabwe for recovery in 2022.

But it said the pace of the rebound would hinge on how authorities handled hurdles stemming from upcoming general elections, continuing power shortages and a “colossal” debt, all of which will frustrate ongoing efforts to cool off protracted jitters.

In July, authorities acknowledged shocks that continue to roam the Zimbabwean economic landscape when Finance and Economic Development minister Mthuli Ncube cut growth targets to 4,6%, a significant reduction from 5,5% projected in December 2021, citing depressed activity as rates rioted while inflation raged.

Authorities project the annual inflation rate to plummet from October, after hitting 286% last month — one of the most aggressive of such rises in recent months.

Morgan&Co called on government to keep an eagle’s eye on the inflation rate, a scourge that is not new to Zimbabwe after forcing the abandonment of the domestic unit in 2008.

“A key concern has to do with emerging inflationary pressures in the domestic economy and a deteriorating Zimbabwe dollar,” the advisory said in its report titled Economics & Equity Strategy Note, the Zimbabwe Syndrome.”-newsday