Online Reporter
Business Reporter
Zimbabwe’s economic stabilisation measures are beginning to yield tangible results, with record foreign currency receipts and low, stable inflation pointing to an improving macroeconomic environment.
According to FBC Securities Economic Snapshot for July, foreign currency receipts surged 47,8 percent to a record US$10,72 billion in the first half of the year, up from US$7,25 billion during the same period last year.
Export proceeds accounted for US$7,53 billion of total earnings, rising 90,7 percent year-on-year.
Diaspora remittances also increased 41,4 percent to US$1,55 billion, while foreign direct investment more than doubled to US$269,9 million, providing additional support to the external position.
At the same time, annual ZiG inflation fell to 3,2 percent in July from 4,7 percent in June, while monthly inflation eased to 0,1 percent from 0,6 percent.
Last year, annual ZiG inflation peaked at 95.8 percent in July, before plunging to a three-decade low in January this year.
The report attributed the low-inflation environment to prudent monetary management, fiscal discipline and relative exchange-rate stability.
The stronger inflows have also improved Zimbabwe’s external position, with the current account recording a surplus of about US$616 million.
The report projects the economy to grow 5 percent this year, although it cautions that power constraints, debt, climate risks and reliance on mineral exports remain key vulnerabilities.
