Government needs to implement long-awaited reforms to grow the economy, according to the International Monetary Fund’s (IMF) Wojciech Maliszewski.In a statement released after an IMF staff visit, he said: “Zimbabwe’s economy has continued its post-Covid recovery, but enhancing its longer-term growth potential would require strong reform efforts. “Real GDP is projected to grow by around 4.8% in 2023, supported by strong activity in the mining sector and — ref lecting the beneficial impact of structural reforms — in agriculture and energy sectors.”Growth is expected to slow to 3.5% in 2024 due to weaker global demand for minerals and a weather-related slowdown in agriculture. As external conditions worsen, the economic outlook would more crucially depend on progress toward macroeconomic stabilisation and transformational structural reforms, he warned. “Key economic policy reforms identified in previous Article IV consultations remain paramount to fully restore macroeconomic st abilit y. “Structural reforms aimed at improving the business climate and reducing governance vulnerabilities are key for promoting sustained and inclusive growth and would bode well for supporting Zimbabwe’s development objectives embodied in the country’s National Development Strategy 1 (2021-2025).“Sustainable development will also require a resolution of debt overhang.”Zimbabwe’s total consolidated debt amounts to $17.5 billion, according to the African Development Bank.International creditors are owed $14.04bn, while domestic debt is $3.4bn. Broken down, bilateral creditors are owed around $5.75bn, while debt to multilateral creditors is estimated at $2.5bn. The country is behind on payments. If the trend continues, Zimbabwean debt will hit $5.1 trillion by 2028, according to Aaron O’Neill of Statista.
