Zimbabwe economy heads for deflation point
Wednesday, January 15, 2014
The economy recorded sustained disinflation towards the end of 2013, with the annual year on year inflation closing the month of November at 0,54 percent.
The Zimbabwe National Statistics Agency is due to release December inflation statistics this week. Economist Joseph Mverecha told a post Budget meeting for members of Parliament that the downward trend in inflation was likely to persist.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...