Zimbabwe has faced tough economic challenges and extraordinary shocks caused by the protracted drought, cyclone Idai, and the COVID-19 pandemic, which led to sharp contractions in economic growth in 2019 (-6.1%) and 2020 (-4.1%), while inflation reached 837% (YoY) by July 2020. According to the International Monetary Fund (“IMF”), real GDP growth rebounded to 6.3% in 2021. Due to better rainfall in the 2020/21 season which boosted agricultural production (through a bumper maize harvest) and electricity generation, assisted by improved capacity utilisation in industry; increased mining activity; buoyant construction; and the stabilisation of prices and exchange rates. A tighter policy stance since mid-2020 relative to 2019 contributed to lowering inflation to 60.7% (YoY) at end-2021.
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