Zimbabwe economy expected to shrink by a whopping 12.9% – The Economist

vantunews 04 January, 2020 #Zimbabwe Economic Crisis#Zimbabwe Economy#Guyana Oil Reserves#Guyana Economic Growth#Guyana Exxon Mobil#World Best Economies 2020#Worst Performing Economies 2020

The Economist has put up their annual forecast about the performances of the economies in the world measured by growth in Gross Domestic Product (GDP). Zimbabwe features among the worst performers coming second behind Venezuela. Zimbabwe’s GDP is expected to shrink by a whopping -12.9%.

Zimbabwe is currently experiencing one of it’s worst economic meltdown in a decade with millions of Zimbabweans facing starvation. Since the government reintroduced the Zimbabwe dollar in June 2019 it has fallen by more than 1680% against the United States Dollar which Zimbabwe had introduced in 2009 after the local currency was rendered useless by hyper inflation. Salaries have not kept up with the depreciation of the Zimbabwe dollar, civil servants have only be awarded a 100% increase which has left many of them failing to sustain themselves amid rising prices which have increased by more than 1800% compared to 2016.

Doctors in the public hospitals have been on strike since 03 September 2019 over low salaries and poorly incapacitated hospitals that lack the basics – critical drugs and medical equipment.

Venezuala is expected to be the worst performing economy shrinking by 20.5% in 2020. Guyana is expected to register the best perfomance with it’s GDP expected to grow by a huge 35%. Rwanda is expected to come second with a growth of 8.1%. Ethopia is expected to come 4th with a 7.4% growth.

Worst-performing economies of 2020

1. Venezuala -20.5%

2. Zimbabwe -12.9%

3. Macau -3.3%

4. Argentina -2.5%

5. Iran -1.6%

Best-performing economies of 2020

1. Guyana 35%

2. Rwanda 8.1%

3. Bangladesh 7.7%

4. Ethiopia 7.4%

5. Bhutan 7.3%

What is behind Guyana Economic Growth?

Guyana’s  explosive growth is expected to come from oil production which began in December 2019 after U.S. oil company Exxon Mobil said it began producing crude off the coast of the South American country. Guyana is the only English speaking country in South America. Guyana which has got a population of just 780 000 people share it’s borders with Brazil, Suriname and Venezuela. In comparison to oil giant Saudi Arabia, which has approximately 1,900 barrels of offshore reserves per person, Guyana has got a whopping 3,900 barrels person, the highest in the world.

International Monetary Fund (IMF) is forecasting Guyana’s economy to grow by a mouth watering 86% in 2020. The Economist is however conservative in it’s estimates putting the growth at 35% which is still very huge and unusual. In 2019 Guyana’s economy grew by only 4.4%.

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