PESA Editorial on Zimbabwe: 1H2022/23

Zimbabwe’s economy has had a slow recovery from the shock caused by the COVID-19 pandemic. Real GDP growth is projected to improve from an annual average of -1.7% for 2019 to 2021, to 3.5% in 2022. Inflation is projected to decrease from an annual average of 303.7% for 2019 to 2021, to 86.7% in 2022. The elevated inflation is caused by the continued economic crisis, severe liquidity and energy constraints, and the recent sanctions against Russia which have increased the price of crucial imports. In the medium-term period from 2023 to 2025, real GDP growth is projected to decrease to an annual average of 3.1%. Meanwhile, inflation is projected to decrease to an average of 35.1% over the medium-term from 2023 to 2025.