Economic decline is worsening
ZIMBABWE’S exports have declined by at least 19 percent so far this year, according to the country’s national statistics agency, ZimStat. This serious economic decline was also reflected in the difference between exports and imports. Thanks to some new controls, Zimbabwe imported 13 percent less than usual, but this was still more than double its exports of $949 million (R14.4 billion) in the first five months of the year. During the corresponding period last year, Zimbabwe’s exports stood at $1.177bn, while imports were $2.38bn. Zimbabwe mostly imports consumer goods, groceries, cellphones, vehicle spares and second-hand vehicles. Zimbabwe’s main exports are tobacco, scrap metal, platinum and other minerals. ZimStat said the export drop was largely attributed to the weakening of international commodity prices. Last month, the Reserve Bank of Zimbabwe announced a $200m 5 percent bonus to be paid out to exporters, in new bond notes, the value of which will be the same as the US dollar. – ANA INTERNATIONAL Monetary Fund (IMF) managing director Christine Lagarde warned the UK of the risks of leaving the EU and said there was a clear economic argument for remaining part of the bloc.
EU membership had brought jobs and income gains to Britain and helped make the country a “dynamic and vibrant economy”, Lagarde said in the prepared text for a speech in Vienna on Friday. European integration had lifted trade and investment and raised productivity and incomes, she said.
“We have already been on record that the economic risks of leaving are firmly to the downside,” Lagarde said. “There is, in my view, a clear case as to how the UK has benefited – and will continue to benefit – from its membership in the European Union.”
In the UK, referendum campaigns were suspended for a second day on Friday after the killing of Labour legislator Jo Cox, an advocate for “Remain”.
The IMF delayed by 24 hours the publication of a detailed report on the implications of Brexit. “As I speak, my thoughts, and I’m sure our thoughts, are with the family members, the friends and those whose life was touched by Jo Cox,” Lagarde said.
The IMF chief said she had debated with herself about whether to mention the UK’s referendum at all after what happened to the British legislator and said she did not want to take questions on Brexit “out of respect”.
She said most economists had concluded that a “withdrawal of a member” would have negative effects and that was “compelling, even if you discount them for sometimes having the wrong forecasts”.
Her warning reiterates the message contained in an IMF report last month which warned Brexit could lead to a “protracted period of heightened uncertainty”, triggering financial-market volatility and hurting economic output. It also warned it could erode London’s position as a financial centre. – Bloomberg