GDP to decline by 11,5%

Staff Writer

ZIMBABWE’S gross domestic product (GDP) is forecast to decline by a further 11,5% this year, according to banking statistics.

rial, Helvetica, sans-serif”>The statistics released last week show that real GDP declined by 5% in 2000, 7,5% in 2001, and 11,9% in 2002.

They are forecast to decline by a further 11,5% this year.

The major reductions are expected in agriculture (17%), distribution (8,5%), manufacturing (10%), mining and quarrying (7,4%) and construction (5,5%).

The country’s economy is currently facing an extremely difficult period caused mainly by hyperinflation, various shortages such as fuel, electricity, consumer items and recently cash.

The bankers said the half-year to June 30 was an extremely challenging period for Zimbabwe.

They said the main macro-economic challenges during the period were a decline in GDP, high money supply growth, domestic debt, weak balance of payments support and foreign currency shortages.

Domestic debt, which stood at $346 billion in December last year, rose dramatically to $546 billion as at June 30.

The bankers said with Treasury Bills accounting for 96% of the debt, interest costs would continue to be a burden on the fiscus.