Zimbabwe's economy running out of steam

Zimbabwean economic growth has slowed dramatically, with logistics companies reporting widespread business closures among their clients. According to the International Monetary Fund (IMF), the economic rebound experienced since the end of hyperinflation in 2009 has ended. “After averaging 10% from 2009- 2012, growth fell to an estimated 3.3% in 2013, reflecting tight liquidity conditions, election-year uncertainty, weak demand for key exports, competitiveness pressures, and the impact of adverse weather. “Inflation continued its downward trend from 2.9% (year-onyear) at end-2012 to -0.3% in April 2014, mainly reflecting the appreciation of the US dollar against the South African rand and weak domestic demand,” said the IMF Board of directors after holding bilateral discussions with the Zimbabwean authorities. “Zimbabwe’s external position remains precarious, with usable international reserves covering less than two weeks of imports,” warns the IMF. Lower exports of minerals have put pressure on both the budget and hauliers, who are looking aggressively for business in neighbouring markets. “Zimbabwe faces serious medium-term challenges and achieving sustainable, inclusive growth will require strong macroeconomic and financial policies, an enabling business environment, and normalised relations with creditors," says the IMF in a statement. INSERT After averaging 10% from 2009-2012, growth fell to an estimated 3.3% in 2013.