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Zimbabwe - Monthly Bulletin - February 2019
The Zimbabwe economy continues to be characterized by challenges at a time when government is trying to develop appropriate policy responses. Inflation continues to be the highest in the region, as the inflation rate for January 2019, which was at 56.9 percent, was the highest in Africa. At the global level, Gold and platinum prices, which are the two main mineral export products for Zimbabwe, declined by 3.0 percent and 18.5 percent respectively in January 2019 compared to January 2018, imposing negative pressures on foreign currency earning potential as well as government revenues from royalties. The average wheat price also increased by 16.0 percent in January 2019 compared to January 2018, at a time when Zimbabwe is a net wheat importer and shortage of bread and other flour based confectionaries continue to characterize the economy. The uncertainty surrounding Zimbabwe’s currency reform and negative economic outlook however saw the Zimbabwe Stock Exchange being among the best performers among selected stock exchanges in the region as local investors sought a safe haven for their investments on the local bourse.