What kind of economy does zimbabwe have

Economic growth this year will be led by recovery of agriculture as rains normalize, businesses adjust to limitations caused by the COVID coronavirus pandemic, and inflation slows down. However, disruptions caused by the pandemic will continue to weigh on economic activity in Zimbabwe, limiting employment growth and improvements in living standards.

The ZEU, Overcoming Economic challenges, Natural Disasters, and the Pandemic: Social and Economic Impacts , provides the World Bank perspective on macroeconomic and poverty developments and discusses ways to strengthen public service delivery in key sectors.

This is the third economic update for Zimbabwe produced by the World Bank. Economic Updates are a standard World Bank tool for macroeconomic and fiscal monitoring. Overall, the COVID global contagion continues to pose significant downside risks, and thus the global and local outlook remains uncertain.

A prolonged pandemic, weaker global demand, and heightened macroeconomic instability could choke economic growth, increase poverty, and worsen human capital development outcomes. The country suffers from a binding foreign exchange constraint that forced the central bank to introduce an interbank market for foreign exchange in February Nevertheless, the official rate has failed to attract inflows as it remains below the black-market rate.

Public finances have improved since October thanks to rising revenues from a two percent intermediated mobile transfer tax and reduction in expenditure. The IMF has agreed to put the country onto a staff monitored program. Discusses key economics indicators and trade statistics, which countries are dominant in the market, the U. In addition, the economic stimuli provided to businesses should be carefully monitored, managed, and implemented to minimize wasteful spending and leverage the private sector.

Meeting the Government aspiration of attaining upper middle-income status will also require authorities to strengthen governance; ensure greater transparency and accountability; and increase public financing and investments focused on critical sectors.

Since , direct lending has been suspended because of non-payment of arrears. However, the WBG has remained engaged through trust fund support to key sector reforms aimed at ensuring service delivery. The Health Sector Development Project has helped:.

With support from the Zimbabwe Reconstruction Fund , significant achievements in include:. The Financial Sector Reform and Strengthening Initiative has provided capacity building for the Insurance and Pensions Commission in insurance and pensions supervision and contributed to the development and implementation of guidelines on currency reforms.

In , the Zimbabwe Reconstruction Fund ZIMREF , a country-specific umbrella-type multi-donor trust fund was approved to contribute to strengthening systems for reconstruction and development. Canada recently joined the fund. The government is a co-financier while Cordaid is the implementing partner. This site uses cookies to optimize functionality and give you the best possible experience.

If you continue to navigate this website beyond this page, cookies will be placed on your browser. To learn more about cookies, click here. Where We Work Zimbabwe. Zimbabwe Overview. Human Capital Following a decade of positive progress in human capital indicators, pandemic has led to some deterioration in outcomes. Last Updated: Mar 23, The TA also supports the Education and Health components. Human Capital The Health Sector Development Project has helped: More than 1,, women receive antenatal care services through at least one visit at supported facilities.

The intervention was also found to be very cost-effective in strengthening Maternal and Child Health services in Zimbabwe. Building on the Impact Evaluation, a recent Cost Effectiveness Analysis showed that residents of the participating districts gained lives and 15, Quality Adjusted Life Years annually, with quantity and quality improvements each contributing about half the gains.