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The economy of Zimbabwe contracted in the second quarter of the year. Gross domestic product (GDP) at market prices nearly halved to US$3.28 billion from the previous period, mainly due to the depreciation of the local currency. In the first quarter, GDP at market prices was ZWL$6.65 trillion or US$7.15 billion, <a href="https://www.newsday.co.zw/business/article/200021191/bloodbath-in-q2-as-zimdollar-depreciates">NewsDay</a> reported citing the latest data by ZimStat. However, GDP rebounded in the third quarter to ZWL$41.35 trillion or US$7.56 billion, following measures implemented by fiscal and monetary authorities to halt the currency depreciation.
During the presentation of the third-quarter GDP estimates, Tapiwa Gumbo, the national accounts and analysis manager at ZimStat, mentioned that the International Monetary Fund (IMF) had inspected their methodology and agreed with the findings. Gumbo said:
<blockquote>
People sometimes have what they think is normal and should be done, which probably ideally is not what is provided in the manual. So, we try to follow the manual so that our statistics are accurate, are comparable with other countries. So, this is what we try to do and publish because we were presenting a national GDP.  
So, what we do here is publish the quarterly annual GDP numbers. So, they (IMF) are checking on our methodology, and data, are we following the systems of national accounts? They scrutinised, provided a second eye to the statistics and reviewed the methodology. We showed them the system, the national accounts database system that we normally use and we agreed.
</blockquote>
However, just two days earlier, the IMF had expressed concern over the competencies and methodology used by ZimStat in determining key economic metrics.
Concerns have been raised by the British-based economic researcher, World Economics, and the World Bank regarding the government’s data collection methods to determine key economic metrics.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Pindula News

ZIMSTAT Says The Economy Of Zimbabwe Contracted In 2nd Quarter

Retired Major Dr Anywhere Mutambudzi, Chief Director of Strategic Communications in the Presidential Communications Office of the President and Cabinet in Zimbabwe sparked a social media controversy by sharing the RankingRoyals report on the poorest countries. The report did not include Zimbabwe among the world’s poorest countries.
The report factored in the Gross Domestic Product (GDP) of various nations. GDP measures the total value of goods and services produced within a country’s borders over a specific period, typically a year. It is often seen as an indicator of an economy’s size and overall health, offering insights into economic activity, productivity, and living standards. However, it’s important to note that GDP alone does not encompass all aspects of an economy, such as income distribution, quality of life, or sustainability. Therefore, it is commonly used alongside other indicators to gain a more comprehensive understanding.
Dr Mutambudzi stated on X (formerly Twitter) that Zimbabwe’s exclusion from the list of poorest nations was due to President Emmerson Mnangagwa’s policies. He said:
<blockquote>
If you wish Zimbabwe ill, you will likely review this attachment several times thinking you are missing something. It’s true, Zimbabwe is not on the list of group of countries that are classified as poorest as of 2023. This has been made possible by President @edmnangagwa’s policies of thinking outside the box to improve our collective well-being through homegrown solutions inspired by the philosophy Nyika Inovakwa neVene Vayo, this even in an environment of efforts to strangle the country through sanctions, themself a crime against humanity. It takes strong and visionary leadership in a dog-eat-dog global environment to achieve such a feat.
</blockquote>
<img alt="" class="size-full wp-image-263314 aligncenter" decoding="async" height="1171" loading="lazy" sizes="(max-width: 941px) 100vw, 941px" src="https://news.pindula.co.zw/wp-content/uploads/2023/09/Per-capita-Poorest-countries-Rankingroyals.jpeg" srcset="https://news.pindula.co.zw/wp-content/uploads/2023/09/Per-capita-Poorest-countries-Rankingroyals.jpeg 941w, https://news.pindula.co.zw/wp-content/uploads/2023/09/Per-capita-Poorest-countries-Rankingroyals-241x300.jpeg 241w, https://news.pindula.co.zw/wp-content/uploads/2023/09/Per-capita-Poorest-countries-Rankingroyals-823x1024.jpeg 823w, https://news.pindula.co.zw/wp-content/uploads/2023/09/Per-capita-Poorest-countries-Rankingroyals-768x956.jpeg 768w" width="941"/>
Journalist Hopewell Chin’ono rejected the report, stating that Zimbabwe is, in fact, in a worse condition than many of the countries listed. He said:
<blockquote>
I am sorry to disappoint you @DrMutambudzi Zimbabwe is on that list, but because of our dysfunctional economy, many indices are dropping us. Zimbabwe is actually worse than many of those countries, see attached <a href="https://www.gfmag.com/global-data/economic-data/the-poorest-countries-in-the-world">link below</a>. In order for you to understand what I am saying, what is Zimbabwe’s GDP? End of story!
</blockquote>
Chin’ono referred to a report from Global Finance magazine, which placed Zimbabwe at number 17 on the list of poorest countries worldwide, with a GDP-PPP of $2,627. The report explained that when determining the poorest countries, they consider GDP per capita as a standard metric but also account for differences in living costs and inflation rates by using purchasing power parity (PPP). They said this allows for a better assessment of an individual’s purchasing power in each country.
A higher GDP-PPP indicates a relatively higher standard of living, as individuals have more resources and buying power to meet their needs and desires. Conversely, a lower GDP-PPP suggests a lower average income and potentially limited access to goods and services.
The data used by Global Finance magazine was sourced from the International Monetary Fund’s World Economic Outlook report from April 2023.
The Zimbabwean economy started to fall behind South Africa and other SADC countries in the early 2000s. This decline was caused by various factors. Controversial land reform policies disrupted agricultural production, leading to a decline in output. Hyperinflation reached extreme levels, eroding the currency’s value and destabilising the economy. Political instability, including disputed elections, created an uncertain business environment. Economic mismanagement, such as excessive government spending and corruption, further contributed to the decline. Additionally, international sanctions imposed in response to human rights abuses and governance issues limited access to markets and foreign investment. These challenges, combined with limited credit access and infrastructure deficiencies, led to Zimbabwe’s economic decline.
The economic challenges in Zimbabwe had significant social impacts including increased poverty and income inequality, high unemployment rates, limited access to healthcare and education, emigration of skilled professionals, strained social services, and political and social tensions. Vulnerable populations were particularly affected by these challenges.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Controversy As Zimbabwe Is Excluded From List Of World's Poorest Nations

Speaking at the handover of an ambulance at Makuti Clinic, Transport and Infrastructural Development Minister Joram Gumbo said Zimbabwe is losing about $406 million a year due to road traffic accidents.
Gumbo said this amounts to 3% of Zimbabwe’s Gross Domestic Product (GDP). 1 041 people have died in road accidents between January and June this year, compared to 830 people during the same period last year. This represents a 12,5 percent increase. Said Gumbo:
<blockquote>Zimbabwe is estimated to be losing about $406 million every year due to road traffic accidents. This is almost three percent of our Gross Domestic Product (GDP) which is estimated at $14 billion. It is sad to note that from January to June 2018, Zimbabwe has lost 1 041 people due to road traffic accidents, up from 830 people killed during the same period last year.</blockquote>
More: <a href="https://www.herald.co.zw/accidents-bleeding-zims-gdp-gumbo/">Herald</a>

Zimbabwe Losing  $400 Million A Year Due To Road Accidents: Gumbo

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