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Harare - The weakening rand will worsen the economic situation in Zimbabwe, a World Bank official has said.
Nadia Piffaretti, the World Bank's senior country economist for Zimbabwe, told a forum in Harare on Wednesday that the softening rand presents problems for Zimbabwe, as the country's weak economy is funded by a strong dollar.
"The rand has lost a lot of ground and that situation is not going to reverse anytime soon. And this presents problems because the Zimbabwean economy experienced a rebound when the dollar was weak, but now when it is going the opposite direction Zimbabwe finds itself in serious problems as it has a weak economy being funded by a strong dollar."
She added: "That brings in the issue of competitiveness. It’s cheaper to import than to export, therefore the import bill will continue rising on a permanent basis.”
Zimbabwe imports the bulk of its products from South Africa, with 60% of groceries in most supermarkets being imported.
Latest trade figures from Zimbabwe’s statistical office Zimstat showed that the country imported products worth US$3.4bn from South Africa and exported goods, especially minerals, worth $2.43bn.
With the rand weakening, Zimbabwe will get less for its mineral exports which are supposed to provide the country with much-needed revenue.
- Fin24
Nadia Piffaretti, the World Bank's senior country economist for Zimbabwe, told a forum in Harare on Wednesday that the softening rand presents problems for Zimbabwe, as the country's weak economy is funded by a strong dollar.
"The rand has lost a lot of ground and that situation is not going to reverse anytime soon. And this presents problems because the Zimbabwean economy experienced a rebound when the dollar was weak, but now when it is going the opposite direction Zimbabwe finds itself in serious problems as it has a weak economy being funded by a strong dollar."
She added: "That brings in the issue of competitiveness. It’s cheaper to import than to export, therefore the import bill will continue rising on a permanent basis.”
Zimbabwe imports the bulk of its products from South Africa, with 60% of groceries in most supermarkets being imported.
Latest trade figures from Zimbabwe’s statistical office Zimstat showed that the country imported products worth US$3.4bn from South Africa and exported goods, especially minerals, worth $2.43bn.
With the rand weakening, Zimbabwe will get less for its mineral exports which are supposed to provide the country with much-needed revenue.
- Fin24
