RISK RATING
Default High Risk Score | 9.00 |
Normal Average | 7.90 |
Weighted Average | 8.10 |
Zimbabwe is yet spiralling further into economic crisis with the threat of hyperinflation, collapsing power supply, and cash shortages. Regional coronavirus restrictive measure will cut remittances and mining revenues, further aggravating Zimbabwe’s economic outlook, while import halts will exacerbate shortages of food and drugs. The mismanagement of the coronavirus outbreak, amidst allegations of misinformation and corruption, will be used by rival political factions to force the ouster of the president unless he can forge a new alliance. Beyond the fall in remittances and mining revenues, the regional lockdowns and spread of the coronavirus are likely to have a serious impact on Zimbabwe’s already weak economy. Economic output economy is expected to have contracted by 7.5 percent in 2019, according to the World Bank, with extreme poverty rising to 34 percent, or 5.7 million people. Zimbabwe is now one of the four most food insecure states of the world. Moreover, Zimbabwe’s failing economy and mismanaged coronavirus crisis, as well as the government’s inability to secure a debt relief and financing deal, will seriously undermine political stability and security in 2020.
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