Zimbabwe’s inflation figures ‘doctored’—analyst

By Tichaona Sibanda
19 September 2006

A political analyst says that Robert Mugabe’s regime has all along been lying about the state of the country’s economy..

Bekithemba Mhlanga, a UK based political and social analyst said inflation figures released by the government in the last couple of months were certainly ‘doctored’ and do not tally with what is happening on the ground.

‘The figures were not entirely correct and this evidently shows the government has been living a lie the last six-seven years,’ he said.

His comments come a day after the International Monetary Fund warned the country’s yearly inflation could average 4 000 percent in 2007 as long as the regime continue on it’s current economic path.

The Bretton Woods institution said the country’s inflation rate, which is currently pegged at 1 204.6 percent for August, could range between 4 000 and 6 000 percent next year unless there is a fundamental shift in the economic management style.

The IMF statement added that the main drivers of inflation would remain the quasi-fiscal activities of the Reserve Bank of Zimbabwe that have resulted in high money supply growth as well as a poor exchange rate policy.

‘If you look at it this way Gono is on a weekly basis coming up with billions or trillions of dollars of facilities for all kinds of sectors. But these facilities are not being backed up by any real productivity in the country or being backed up by any gold reserves. So its true when the IMF blames the inflation on the quasi-fiscal activities of the Reserve bank,’ Mhlanga said.

Other economists have warned that there is no way of avoiding the IMF projection of 4000 to 6000 percent inflation and Mhlanga agreed, explaining that what it would mean ‘is the country going over the tipping point.’