Forecast is achievable after the country had good rains that will boost farm output to the highest in four years. The International Monetary Fund expects the economy to grow 3.1% this year, after contracting for the past two. The vaccination program can be scaled up “pretty fast” and Victoria Falls, a major tourist destination, will inoculate its 25 000-adult population within the next two weeks. In contrast with the optimistic outlook on growth, the southern African nation still faces a 241% inflation rate and foreign-currency shortages. The disposable incomes of most workers who earn in local currency has shrunk.
The Zimbabwe dollar now trades at 84 to the US dollar after being pegged at parity just two years ago. The gap between the official exchange rate and parallel market has widened by 36%, with a US dollar selling for 115 Zimbabwean dollars on the streets of Harare, the capital. The gap between the official rate and the parallel market rate is within global norms. Victoria Falls Stock Exchange, or VFEX, which began operating in October and only conducts trades in US dollars, is seeking new equity and bond listings. Both private companies and government institutions have expressed interest in listing US dollar bonds on the exchange.