YEARLY REPORT -2024-01-23
In this paper, we endeavour to put our views and expectations on the
socio-economic landscape for Zimbabwe in 2024, building on the base
of established of the same in the preceding year. The socio-political
situation remains complex following the 2023 harmonized elections,
which saw the ruling ZANU PF party secure a resounding victory and
President Emmerson Mnangagwa re-elected. However, the main
opposition CCC did not contest the results through the court process
but only through utterances and social media as they continue to face
internal discord. After CCC recalls, ZANU PF was able to gain a twothirds parliamentary majority in subsequent by-elections. Looking
ahead to 2024, Zimbabwe faces mounting economic pressures from
drought, inflation, and foreign exchange volatility that could ignite
social spending demands amidst low disposable incomes and weak
economic activity. However, the government has limited fiscal space
to respond to the high social need due to high debt levels. Attracting
foreign direct investment will be critical to provide budget support.
In 2023, Zimbabwe's economy contended with currency instability,
rising inflation that peaked over 50%, power shortages, declining
industrial capacity utilization and weak aggregate demand. Exports
provided some respite, rising 12% while agriculture posted good
harvests. However, imports also swelled, widening the trade deficit
gap. Mining output fell due to policy changes and lower commodity
prices. The local currency depreciated significantly, public debt
remained elevated at US$17.7 billion, and the budget deficit reached
ZWL1.4 trillion.
Written by EFE Research