Key Projections for 2022
The public debt decreased from 70% of GDP in 2000 to only 34% of GDP in 2001. This was mainly due to an internal restructuring of domestic public debt – almost 60% of total public debt – by the government, switching the six-month Treasury bills to longer-term T-bills at lower interest rates. However, sanctions and the large amount of arrears owed by Zimbabwe precluded the country from access to IMF and other multilateral creditors lending, meaning its public debt to GDP ratio remained at an average of 51% of GDP per year between 2001 and 2015.
Zimbabwe’s budget deficit rose to about -21% of GDP in 2000. Alongside the increase in production costs and the shortage of foreign currency caused by the high inflation rate, the estimated economic contraction between 1999 and 2008 averaged 6.7% per year.
Despite all these challenges, Zimbabwe was never granted debt relief under the HIPC initiative because of sanctions and outstanding arrears at the time when eligibility was decided by Paris Club donors and multilateral institutions. In contrast, China cancelled Zimbabwe’s debt four times over 2000-2018.
Finally, in 2009, the country experienced economic growth at 7.4% rate for the first time in a decade due to the adoption of a multi-currency basket, which stopped the hyperinflation and allowed currencies such as the US dollar, the South African Rand, and the Botswana Pula, to be used locally.
In addition, Zimbabwe scored one of the highest Debt Transparency Index within the countries in this guide, with relatively thorough publications for government budget proposals and economic reviews, though the access to debt data is limited. The country’s commitment to greater data transparency is reflected in the Freedom of Information Bill that was signed into law in 2020.
Projected debt service to China vs Other creditors
China is one of Zimbabwe’s largest investors and creditors, despite the large arrears holding by the Zimbabwean government to other creditors, but also because other creditors will not lend to Zimbabwe. Zimbabwe has taken around US$3.0 billion of loans from China between 2000-2018 based on the data from China Africa Research Initiative, mainly focusing on transport, power and agriculture sector. For example, Zimbabwe took a US$153 million loan to construct its main airport, Robert Mugabe International Airport in 2018. In 2017, Zimbabwe took a further US$998 million loan to expand Hwange Coal Power Station.
External Debt Stock to China vs. Other Countries (USD millions)
The IMF classifies Zimbabwe as “in debt distress” due to public and total debt and large external arrears, while the Jubilee campaign forecasts the country “in debt crisis”.
However, Zimbabwe needs significant infrastructure finance to meet outstanding basic needs of the population and to cut poverty. Access to, electricity and internet are particular challenges, which are unlikely to be met through domestic government revenues or other domestic means.
and The Development Reimagined Team
Statement on use of data:
Health and Well being choices
People are doing to support their fitness
During the month of January, health and fitness is top of mind for people setting resolutions for a healthy new year. Google searches for fitness peak at the beginning of the year and according to data from the International Health, Racquet, and Sportsclub Association (IHRSA), 10.8 percent of all health club members join their gyms in January.
People plan to do at work when
restictions are lifted
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
Global Corona virus Impact and Implications
COVID-19 cases crossed the 15-million mark globally this week, with South Africa replacing Peru among the top five worst affected countries.