The Ministry of Finance and Economic Development has projected that the country will, in 2019 and 2020, export commodities with a value less than the cost of exports.
This means that Zimbabwe will literally continue to export all the foreign currency that gets into the country.
In the recently published 2020 pre-budget strategy document, the Finance Ministry projected that the country’s exports will record US$5 billion, against imports of US$6.3 billion to give a current account deficit of US$238 million.
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Although the projections do not present an encouraging picture, the Ministry observes that the projections reflect an improvement compared to most recent years. The Ministry said:
This reflects a major shift towards a balanced current account through export promotion supported by import management measures, which prioritise essential inputs and capital equipment as opposed to non-essential imports.
In 2020, exports are projected at US$5.5 billion with imports growing to US$6.6 billion on account of higher imports of essential inputs and equipment, including electricity and fuel.
The Ministry also projected that the economy will further deteriorate in the remainder of the year before it regains in 2020.
This projection is consistent with that of the International Monetary Fund.
More: The Chronicle