In its monthly economic bulletin, Sagit said economic decline was accelerating at an alarming rate two months before a crucial general election, widely expected to be won by the opposition despite internal strife and a State-sanctioned crackdown aimed at weakening its structures.
Mugabe has so far failed to put in place a viable economic policy, stem hyperinflation, address foreign exchange shortages, deal with chronic basic commodities shortages and stabilise the political environment.
The company said: “The inflation outlook remains bleak due to the following factors: excessive money supply growth, and the crash of the Zimbabwe dollar on the parallel market.”
University of Zimbabwe professor of business studies, Tony Hawkins, said the economic crisis would worsen because government had no tangible economic policy.
“It is just a policy of drift,” said Hawkins. “There is no direction and no sign of a turnaround because the dramatic downturn is continuing across the board. I cannot see any light at the end of the tunnel.”
imbabwe’s catalogue of problems include: the food crisis, foreign currency shortages, inflation, company closures, unemployment, poverty, and a sinking economy which is now said to be one of the world’s fastest-shrinking economies. – Chief ReporterPost published in: News