Source: A look at Zimbabwe’s recovery odds | The Financial Gazette March 1, 2018
Government plunged into deep crisis in 2017 after its fiscal deficit guzzled a significant chunk of gross domestic product more than 10 percent― a margin way above both the official target of 2,3 percent and the standard ceiling of 2,5 to 3 percent of GDP.
By Munyaradzi Mugowo
IT is only in Zimbabwe where an economy that has suffered a 10-year economic depression, succeeded by eight years of liquidity and solvency crises, can be expected to turn around in 100 days.
Even in giant economies like the US, China and the European Union (EU), recessions and recoveries usually take around one to two years. The most recent global recession, that initially manifested as a US financial crisis, stretched from mid-2007 to mid-2009 and only began to ease after two years of intense fire-fighting involving all the big boys of the world from the US, the EU, China and Japan.
The syndicated response comprised historically unprecedented fiscal and monetary policy measures such as government bailouts, quantitative easing, tax rebates for households, tax cuts for businesses and interest rate cuts.
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