Policymakers
and business leaders in Zimbabwe seem to share the opinion that past policies
are still appropriate for the New Normal economy of the post-Global Financial
Crisis world.
Since
dollarization, investment has averaged only 17% of GDP. For the economy to grow
at the targeted (ZIM-ASSET) 6% to 7% rate, investment of at least 30% of GDP
needed.
China,
the US, the Euro area and many others have to undergo – often painful
–rebalancing. Zimbabwe is no exception, especially after the meltdown of the
“Lost decade” (1998-2008).
For
the immediate future the economy will continue in muddle-through mode, as
growth will be lack-lustre – 3% to 4%.
Financial
sector will restructure as banks consolidate, hence fewer banks and asset
managers.
Read
more http://bit.ly/1tqVISg
A
republication of a presentation by Professor Tony Hawkins, Economist and
Professor, University of Zimbabwe.
Thought
to you by TheBehaviourReport.com
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