The IMF has projected that the Zimbabwean economy will contract by 7.4% in 2020 due to the pandemic that has so far infected 23 people and killed 3 people in Zimbabwe, Newsday reports.
This was revealed in a report by the international money lender which further confirmed that 2020 will be a turbulent year for Zimbabwe because:
On trade, a sharp growth slowdown among key trading partners reduces external demand, while disruptions of supply chains lower the availability of imported goods, potentially adding inflation pressure.
In addition, the sharp tightening of global financial conditions reduces investment flows to the region and hampers its ability to finance spending needs to deal with the health crisis and support growth,” IMF said.
This may result in either a cut in government spending, a build-up in arrears, or an increase in government borrowing in local markets, with attendant consequences on domestic credit and growth
According to Zimtrade, almost all African countries might be affected economically by the pandemic that has hindered air travel and ships which are used to transport a lot of exports out of Africa and individual nations.