QUARTERLY
ECONOMIC
REVIEW


SEPTEMBER 2016

RESERVE BANK OF ZIMBABWE

CONTENTS


MONETARY DEVELOPMENTS, INTEREST RATES AND FINANCIAL MARKETS . 24
5.

List of Figures

List of Tables

1. OVERVIEW

Significant economic challenges such as the
continued uncertainty regarding the medium to
long term economic implications of Brexit,
rebalancing in China and declining terms of
trade in commodity exporting economies,
continued to characterise the world economy
during the third quarter of 2016. Against this
background, the International Monetary Fund
(IMF) in its October 2016 World Economic
Outlook (WEO) report, left the global
economic growth forecasts for 2016 and 2017
unchanged at 3.1% and 3.4%, respectively.


The
fragile
global
economic
growth
performance continued to negatively impact on
domestic economic activity. In this regard, the
real GDP growth rate has been revised
downwards from 1.2% in the 2016 Mid-Term
Fiscal Policy Review to 0.6 % for 2016. The
economy is projected to grow by 1.7% in 2017.


This, notwithstanding, the manufacturing
sector has shown signs of recovery supported
by interim policy measures introduced by
Government to promote the consumption of
locally produced goods under Statutory
Instrument (SI) 64. The positive impact of the
SI 64 of 2016 has been reported in sub-sectors
such as baking, iron and steel fabrication,
pharmaceuticals, oil expressing and furniture
manufacturing.

On the external sector front, the country’s
export earnings increased by 28.4% in the third
quarter of 2016, largely on account of increases

1 Under the multiple currency system, broad money is
defined as total bank deposits less interbank deposits and
excludes currency in circulation.
in exports of tobacco (211%) and semiprocessed gold (31%). As a result, the trade
balance improved by 7.5%, from a deficit of
US$695.0 million registered during the second
quarter of 2016, to a deficit of US$642.5
million in the third quarter.

Broad money supply1 grew by 3.51%, from
US$5 140.7 million in the second quarter, to
US$5 320.9 million in the third quarter of 2016.
On a year-on-year basis, money supply grew by
16.02%, from US$4 586.02 million in
September 2015, to US$5 320.91 million in
September 2016.
The Zimbabwe Stock Exchange (ZSE),
continued on a negative trajectory during the
third quarter of 2016. During this period, the
local bourse lost a cumulative US$0.72 billion
worth of capitalisation. Similarly, the industrial
index declined by 2.08 points, from 101.04
points as at end June 2016 to 98.96 points as at
end September 2016. The mining index,
however, increased by 1.91 points, from 24.70
points as at end June 2016, to close the third
quarter of 2016 at 26.61 points.

Reflecting the increased use of plastic money,
the value of transactions processed through the
National Payment Systems increased by 4%, to
US$15.69 billion in the quarter ending
September 2016, from US$15.08 billion in the
quarter
ending
June
2016.
Similarly,
transaction volumes also increased by 20% to
94.84 million during the quarter under review,
from 78.85 million in the second quarter.

2.
INTERNATIONAL ECONOMIC
DEVELOPMENTS
The world economy continued to experience
significant challenges during the third quarter
of 2016. The challenges included the continued
uncertainty regarding the medium to long term
economic implications of Brexit, rebalancing
in China, declining terms of trade in
commodity
exporting
economies
and
geopolitical factors in some regions.
European economies, however, experienced
loss of consumer and business confidence,
lower equity prices and suppressed yields on
safe haven assets in the short term, despite that
the long term impact of Brexit is still
indeterminate.
Advanced Economies
Economic activity in advanced economies,
particularly the United States, Euro area and
Japan decelerated during the second quarter of
2016, due to weak non-residential investment
and subdued external demand. Emerging
market and developing economies, however,
registered a slight pick-up in economic activity
during the first half of 2016.
In light of these contrasting fortunes between
advanced economies and emerging market and
developing economies, the IMF’s latest growth
forecasts for 2016 and 2017, as reported in its
October 2016 World Economic Outlook
(WEO) report, remain unchanged from the July
2016 WEO report. The global economy is
projected to slow down to a growth of 3.1% in
2016, from 3.2% registered in 2015, before
picking to 3.4% in 2017. Table 1 shows
economic growth developments and the
revised projections for selected regions and
countries for 2016 and 2017.
Table 1: Global Economic Growth & Outlook
(%)

Actuals
Projections

2016 2017
World Output

Advanced Economies

US

Eurozone

Japan

Emerging
Market & Developing
Economies

China

India

Sub-Saharan Africa

Latin America
& the Caribbean

Source: IMF World Economic Outlook Update (October 2016),
Ministry of Finance and Economic Development and RBZ
projections

United States
The economic performance of the USA was
weaker than expected in the first quarter of
2016. In addition, prospects for a pick-up in the
second quarter did not materialise, prompting a
downward revision of the 2016 growth
forecast, initially from 2.4% to 2.2% in July
2016, before a further revision to 1.6% in
October 2016.
Growth in consumption remained strong
during the first half of 2016, averaging 3.0%.

This positive development was, however,
offset by a sustained weakness in nonresidential investment, reflecting a slump in
capital spending in the energy sector, the
impact of a stronger US dollar on investment in
export-oriented
industries.
In
addition,
heightened fears of financial market volatility
also
militated
against
strong
economic
performance.
Eurozone
The Eurozone’s annualised growth in the first
quarter of 2016 stood at 2.2%, before declining
by 1.2% in the second quarter. Growth in the
first quarter was largely supported by strong
construction activity. A deceleration in
domestic demand, particularly investment,
explained the contraction in economic activity
during the second quarter.
Compared to the July 2016 WEO forecasts, the
real GDP growth in the Eurozone was revised
upwards by 0.1 percentage points, from 1.6%
to 1.7% for 2016, in the October 2016 WEO.
This was largely in anticipation of higher
domestic private consumption anchored on
rising incomes, subdued oil prices and a
rebound in investment during the second half
of 2016. Growth is projected to moderate to
1.5% in 2017, taking into consideration the
potential medium to long term negative impact
of Brexit.
Japan
In Japan, economic growth is now projected at
0.5% in 2016, up from an initial projection of
0.3%, reflecting stronger than expected
domestic demand during the first half of the
year. In addition, improved external demand
and corporate investment are expected to spur
growth in the medium term, with growth
projected to be higher at 0.6% in 2017.
Emerging
Market
and
Developing
Economies
Emerging market and developing economies,
registered a slender pick-up in economic
activity during the first half of 2016. Several
emerging market economies in Asia continued
to record robust growth in the first half of the
year. In particular, China’s growth was close to
7.0%, during the first half of the year, on
account of favourable policies, namely; the
lower benchmark interest rate; expansionary
fiscal
policy;
increased
infrastructure
spending; and strong credit and consumption
growth.
India, which is projected to register a 7.6%
growth in 2016, up from an initial projection of
7.4%, is benefiting from a sizable improvement
in the terms of trade and effective policy
actions. These developments are helping to
prop up domestic confidence in India.
Reflecting positive developments in Asia
during the first half of the year, the IMF revised
the 2016 growth projections upwards, for
emerging market economies from the initial
projection of 4.1% to 4.2%.
In the Middle East, a number of countries are
grappling with subdued oil prices, the
consequences of geopolitical tensions and civil
conflicts.

Sub-Saharan Africa
Sub-Saharan Africa (SSA)’s growth prospects
remain gloomy, on the back of challenging
macroeconomic conditions, notably in Nigeria
and South Africa, which are the two biggest
economies in Africa. In Nigeria, economic
activity is being hamstrung by foreign currency
shortages, militant activity in the Niger Delta
as well as power blackouts. The South African
economy continues to grapple with lower
commodity export revenues, weaker investor
confidence and constrained power generation.
Consequently, 2016 growth projections for the
region were revised downwards substantially,
initially from 3.0% to 1.6% and subsequently
to 1.4% and from 4.0% to 2.9% for 2017.
Commodity Price Developments
International commodity prices, which have
generally been declining over the recent past,
rebounded from their early 2016 lows, in spite
of rising uncertainty following the Brexit vote
in June 2016. The modest recovery in
commodity prices during the third quarter of
2016,
particularly
metals,
was
largely
underpinned by the transient stabilisation of
global markets in 2016.
Nickel prices recorded the strongest quarterly
gain of 16.4%, between the second and third
quarters, due to on-going supply tightness from
the suspensions of mines in the Philippines, for
environmental violations. The evolution of
international commodity prices during the
period under analysis is shown in Table 2.


Table 2: International Commodity Prices

June
September % Change
Gold (US$/oz)
1,274.99
1,334.85
6%
Platinum (US$/oz)
984.45
1,085.10
8.1%
Copper (US$/ton)
4,634.34
4,771.18
0.6%
Nickel (US$/ton)
8,882.27 10,259.12
16.4%
Crude Oil (US$/
barrel)
49.83
47.01
0.3%
Source: Bloomberg, 2016
Brent Crude Oil
Brent crude oil prices registered a marginal
recovery in the third quarter of 2016, gaining
by 0.3% to average US$47.01/barrel. The
increase was driven by supply outages, notably
in Canada, a decline in US crude oil stockpiles
and reports of a possible production freeze
among major oil producers in the Organization
of the Petroleum Exporting Countries (OPEC).
Figure 1 shows the monthly evolution of crude
oil prices for the period January 2009 to
September 2016.
Figure 1: Brent Crude Oil Prices US$/Barrel)

Source: Bloomberg, 2016

2011 M1
2011 M5
2011 M9
2012 M1
2012 M5
2012 M9
2013 M1
2013 M5
2013 M9
2014 M1
2014 M5
2014 M9
2015 M1
2015 M5
2015 M9
2016 M1
2016 M5
2016 M9

World crude oil supply in the third quarter of
2016 was slightly lower than in the
comparative period last year. The decline in the
output of Non-OPEC oil producers was
partially offset by an increase in output from
OPEC member States, led by the Islamic
Republic of Iran and Saudi Arabia.
Base Metals
Base metals prices firmed during the third
quarter of 2016, the second consecutive
quarterly gain as prices continued to rebound
from first-quarter lows on supply constraints,
rising demand, and falling stocks. China’s
policy efforts to boost the commodity-intensive
infrastructure and construction sectors has been
a key driver of demand for base metals. In
particular, nickel prices were boosted by strong
stainless steel demand and the potential loss of
Philippines ore output due to environmental
mine audits.
Against this backdrop, quarterly average prices
of copper and nickel picked by 0.6% and 16.4%
to US$4,771.18/ton and US$10,259.12/ton,
respectively as shown in Figure 2.
Figure 2: Base Metal Prices (US$/tonne)
Source: Bloomberg, 2016

Despite a rebound in prices from the January
2016 lows, the World Bank projects average
prices for 2016 to be lower than last year.
Gold and Platinum
Precious metal prices rallied during the period
under review, largely on account of strong
investment demand and safe haven buying,
amid continued low interest rate policy. The
investor-driven gains were partly the result of
tepid U.S. economic data and the U.S. Federal
Reserve decision to delay raising policy
interest rates. In addition, Brexit fuelled
speculation that central banks in major
economies such as China, UK and Japan would
opt for stimulus measures to boost economic
growth and counter its negative impact on
global financial markets. This would heighten
safe haven demand for precious metals.
Resultantly, gold and platinum prices surged
by 6.0% and 8.1%, from their second quarter
averages
to
US$1,334.85/oz
and
US$1,085.1/oz, respectively.
Figure 3 shows trends in precious metal prices.
Figure 3: Precious Minerals Prices
Source: Bloomberg, 2016

10000


2012M1
2012M5
2012M9
2013M1
2013M5
2013M9
2014M1
2014M5
2014M9
2015M1
2015M5
2015M9
2016M1
2016M5
2016M9
Nickel
Copper (RHS)

2012M1
2012M5
2012M9
2013M1
2013M5
2013M9
2014M1
2014M5
2014M9
2015M1
2015M5
2015M9
2016M1
2016M5
2016M9
Gold
Platinum

Food Prices
International prices of most food items
generally declined in the third quarter of 2016,
reflecting ample supplies of maize in the
United States and wheat in Australia and
Central Asia. The recent crop assessment
reports point to improved prospects for 2016
global food production. Figure 4 shows
developments in food price indices.
Figure 4: Food Price Indices
Source: Bloomberg, 2016
Merchandise Trade Developments
Total merchandise trade during the third
quarter of 2016 amounted to US$1,924.9
million, a 14.3% decline from US$2,244.8
million recorded during the third quarter of
2015. On a quarterly basis, total merchandise
trade rose by 13.6%, from US$1,693.8 million
in the second quarter of 2016, to US$1,924.9
million in the third quarter. Figure 5 shows
total merchandise trade from the first quarter to
the third quarter of 2016.

Figure 5: Total Merchandise Trade –Q1, Q2 and
Q3 2016 (US$ million)

Source: Zimstat, 2016

Merchandise Export Developments
Merchandise exports increased by 28.4% from
US$499.4 million in the second quarter of 2016
to US$641.2 million in the third quarter, as
shown in Figure 6. The export earnings were
5.6% higher compared to the same period in
2015.


2013M1
2013M4
2013M7
2013M10
2014M1
2014M4
2014M7
2014M10
2015M1
2015M4
2015M7
2015M10
2016M1
2016M4
2016M7
2016M10
FOOD
MAIZE
WHEAT

Q1
Q2
Q3

Figure 6: Merchandise Exports – Q3 2015
and Q3 2016 (US$ millions)

Source: Zimstat, 2016


The increase in exports was largely on account
of increases in exports of tobacco (211%) and
semi-processed gold (31%).
Flue-cured tobacco, gold, nickel, diamond and
ferrochrome continued to dominate the
country’s exports, contributing about 75% of
total export earnings for the third quarter of
2016.


Table 3: Exports Classified by lHS Code
Product
2nd Quarter
2016 (US$m)
3rd Quarter

(US$m)
3rd Quarter
2016 Share of
Total (%)
Semimanufactured
gold
182.0
237.6
37.1
Nickel
94.3
86.6
13.5
Flue-cured
tobacco
35.2
109.7
17.1
Industrial
diamonds
38.3
20.6
3.2
Ferrochromium
24.8
26.1
4.1
Cane sugar
7.3
30.3
4.7
Platinum
13.3
14.0
2.2
Granite
8.5
9.0
1.4
Other
95.6
107.2
16.7
Total
499.4
641.2
100.0
Source: Zimstat, 2016 & RBZ Computations, 2016
Major Merchandise Export Destinations
The country’s major export markets consist of
South Africa, Mozambique, the United Arab
Emirates, Zambia, Belgium and Botswana.
These countries together absorbed about 98%
of the country’s total merchandise exports,
during the third quarter of 2016. Notably,
South Africa absorbed 77% of the country’s
total merchandise exports, followed by
Mozambique (13%); United Arabs Emirates
(3%); Zambia (3%); Belgium (1%); and
Botswana (1%), as shown in Figure 7.


Q2
Q3

Figure 7: Major Merchandise Export
Destinations (% Share)

Source: Zimstat, 2016 & RBZ Calculations, 2016
Exports to other destinations in the world
constituted 2% of the total exports, in the third
quarter of 2016.

Merchandise Import Developments
Total merchandise imports for the third quarter
of 2016 amounted to US$1,283.7 million,
21.6% lower than in 2015, as shown in
Figure 8. Merchandise imports for the third
quarter of 2016 were, however, 7.5% higher,
compared to the second quarter.


Figure 8: Merchandise Imports – Q3 2015
and Q3 2016 (US$ million)

Source: Zimstat, 2016
The country’s major imports during the period
January to September 2016, mainly comprised
of fuels (diesel and petrol), cereals (maize, rice,
and wheat), soya beans and medicines.

Major Import Sources
During the third quarter of 2016, the country
sourced its imports mainly from South Africa,
43.5%; Singapore, 19.8%; China, 5.6%; India,
3.4%; Mozambique, 3.1%; and Zambia, 3.1%,
as shown in Figure 9.


South
Africa
77%
Mozambique
13%
United
Arab
Emirates
3%
Zambia
3%
Belgium
1%
Botswana
1%
Other


Q2
Q3

Figure 9: Major Merchandise Import
Sources (% Share)

Source: Zimstat, 2016 & RBZ Calculations, 2016

The country’s merchandise imports from South
Africa
mainly
comprised
of
capital,
intermediate and consumer goods. Imports
from Singapore were dominated by petroleum
products, including diesel and petrol.

Trade Balance
The 2016 third quarter merchandise trade
developments resulted in the improvement of
the trade balance by 7.5%, from a deficit of
US$695.0 million registered during the second
quarter of 2016, to a deficit of US$642.5
million in the third quarter of 2016, as shown
in Figure 10.


Figure 10: Trade Balance (US$ million)

Source: Zimstat, 2016 & RBZ Computations, 2016

Overall, the country’s trade account continues
to register deficits due to over-reliance on
imports of finished goods, against subdued
export receipts. The continued incurrence of
trade deficits is undermining current efforts to
resuscitate domestic industrial production and
the rejuvenation of export sectors. This poses
significant challenges, as the country relies on
export revenues to generate liquidity to support
domestic economic activity.


South Africa
Other
Singapore
China
India
Zambia
Mozambique


2016 Q2
2016 Q3
Exports
Imports
Trade Balance

3.
DOMESTIC ECONOMIC
DEVELOPMENTS
The performance of the domestic economy
continued to be constrained by weak local
aggregate
demand;
low
international
commodity prices; lack of fiscal space; and
infrastructural bottlenecks, during the period
under review.

REAL SECTOR DEVELOPMENTS
The economy is projected to grow by 0.6% in
2016, from an earlier projection of 1.2%, as
reported in the 2016 Mid Term Fiscal Policy
Review. Figure 11 shows the economic growth
trends.
Figure 11: Economic Growth (%)

Source: Zimstat, 2016 & RBZ Estimates, 2016

The downward revision was necessitated by
depressed economic activities in most sectors,
including mining, manufacturing, transport and
communication.


Table 4: Sectoral Growth Rates (%)
Source: Zimstat, MOFED, RBZ, 2016
The third quarter of 2016 witnessed further
deterioration
in
the
macro-economic
environment
driven
by
the
following
challenges:
Liquidity shortages as a result of poor
export
performance,
against
high
import demand
Challenges in the provision of key
enablers,
particularly
water
and
electricity;
Increase in pipeline payments, further
delaying payments to foreign suppliers
and ultimately, the procurement of
critical inputs and raw materials; and
Depressed consumer spending, against
the backdrop of weak aggregate
demand.

2015 2016p

Est.
2016 MidTerm Proj

Revised
Proj
Agriculture, hunting
and fishing
-5.2
-4.2
-3.7
Mining and
quarrying
0.4
13.2
6.9
Manufacturing
0.2
0.2
0.3
Electricity and water
-5.5
-21.8
-19.0
Construction
4.0
1.8
3.5
Finance and
insurance
4.6
2.0
2.0
Real estate
3.5
2.0
2.0
Distribution, hotels
and restaurants
4.0
2.8
1.7
Transport and
communication
1.9
1.5
1.5
Public administration
1.2
-5.0
-5.0
Education
4.2
2.6
2.6
Health
-0.7
0.4
0.4
Domestic services
2.0
1.0
1.0
Other services
3.0
3.0
3.0
GDP at market prices
1.1
1.2
0.6

Agriculture
The better than anticipated performance of
tobacco and maize crops prompted the revision
of the decline in agriculture output from the
initial -9.9% to -3.7% for 2016. The drastic
reduction in the performance of cotton to less
than 50% of the previous season’s output,
however,
weighed
down
the
overall
performance of the sector in 2016.
This, notwithstanding, the decline in crop
output in 2016 is expected to be partially offset
by increases in output in the livestock subsector, particularly cattle, largely due to
drought induced destocking. The high levels of
destocking are, however, expected to have a
negative impact on output in the coming
seasons, as farmers rebuild their breeding
stock.
Maize
Maize output for the 2015/16 agriculture
season, at about 511 000 tonnes, resulted in a
deficit of about 1.3 million tonnes, expected to
be covered through imports of grain until the
2017 harvest. Against this background,
Government
launched
a
special
maize
production
support
programme
under
command agriculture, aimed at meeting the
national requirement of maize from local
production.
A special maize production programme has
been put in place to increase production levels
sufficient to meet national requirements.
Government has already mobilised US$160
million towards the programme, with US$85.5
million going towards irrigable lands and
US$75 million for dry land.


Tobacco
Seasonal tobacco sales amounted to 202.3
million kilograms in 2016, compared to 198
million kilograms in 2015. Tobacco output
increased during the current season largely due
to improved agronomic practices as well as
better than expected yields from the crop
grown under irrigation. Comparisons of
tobacco sales for the year 2015 and 2016 are
shown in Table 5.

Table 5: Comparison of Tobacco Sales in 2015
and 2016


Seasonal
Total

Seasonal
Total

% change
Mass sold
(kg)
202,275,688
197,210,175
2.57
Value (US$)
595,927,523
581,470,968

Price
US$/kg
2.95
2.95
(0.1)
Production
Target
170,000, 000
198, 900 000

Source: Tobacco Industry and Marketing Board

Wheat
Wheat output declined from 62 261 tonnes in
2015 to 59 343 tonnes in 2016, due to a
reduction in both the area under cropping and a
general fall in yields. Table 6 summarises the
performance of winter wheat during the two
seasons.

Table 6: Wheat Output

Area under Wheat
(ha)
14 789
14 229
Yield (t/ha)
4.21
4.17
Output (tonnes)
62 261
59 343
Source: Ministry of Agriculture, Mechanization
and Irrigation Development

Wheat production benefited from the relatively
stable power supply during the growing period,
as well as the reduction in tariffs charged for
raw water for agricultural purposes.


Milk Production

Milk output for the period January 2016 to
September 2016 stood at 48.6 million litres,
14.2% higher than the 42.6 million litres
produced during the same period in 2015. On a
quarterly basis, milk output increased by 5.5%
to 16.8 million litres from July 2016 to
September 2016, following a 0.13% decline in
the previous quarter.

Milk production has largely benefited from the
continued importation of heifers over the years.
During the third quarter of 2016, Government
with assistance from some development
partners, imported 400 dairy heifers under the
Dairy
Revitalisation
Programme.
This
augmentation to the dairy herd is expected to
increase the industry’s output and reduce
reliance on imports of dairy products.


Beef
Cattle slaughters increased for the third
consecutive quarter, with 76 650 slaughters in
the third quarter compared to 71 518 in the
second quarter and 67 331 slaughters in the first
quarter, as shown in Figure 12.

Figure 12: Formal Sector Quarterly Cattle
Slaughters

Source: Ministry of Agriculture, Mechanization
and Irrigation Development

Cumulatively, a total of 215 499 cattle were
slaughtered during the first nine months of
2016, compared to 191 251 cattle during the
same period in 2015.

Pork

Pig slaughters amounted to 43 191 during the
third quarter of 2016, compared to 41 874
during the previous quarter, as shown in
Figure 13.

Q1

Q2

Q3

Q4

Q1

Q2

Q3
Slaughters 60716 63365 67170 64667 67331 71518 76650

CATTLE SLAUGHTERED (000)

Figure 13: Quarterly Pig Slaughters


Source: Livestock and Meat Advisory Council

A total of 126 202 pigs were slaughtered over
the period January to September 2016 - 28%
higher than the 98 305 pigs that were
slaughtered during the same period in 2015.

The increase in pig slaughters reflected the
destocking exercise due to viability concerns
emanating from falling pork prices to below
break-even point. Other protein substitutes,
such as beef and poultry, whose prices have
also drastically fallen, have also flooded the
market. The trend in destocking is expected to
continue during the remainder of 2016.

Like other livestock classes which are mostly
grown under penned conditions and rely on
manufactured stockfeeds, the pig production
industry continues to be negatively affected by
liquidity constraints as well as the illegal
importation of cheap meat products.


Mining
The output of gold and nickel in the third
quarter of 2016 surpassed the levels registered
during the comparable period in 2015. PGMs,
diamond, coal and chrome output was,
however, lower in 2016 compared to 2015. The
following table shows quarterly production
statistics for selected minerals in 2015 and
2016.
Table 7: Mineral Production: Q1-Q3 2015 and

Q3

Q2

Q3

Cumulative
Sept 2016
Gold\ kg


Chrome \t
77 044
35 289

64 113
112 026

Coal \t


Nickel \t


Platinum\ kg


Palladium\kg


Diamonds
(Carats)

Source: Ministry Of Mines, Chamber of Mines, 2016

Gold
Gold production continued to benefit from the
regular monitoring and auditing of producers
by the gold mobilisation taskforce that
managed to plug leakages, resulting in
improved deliveries to Fidelity Printers and
Refiners. The firming of international gold
prices from an average of US$1 259.35/oz in
the second quarter of 2016, to about
US$1 334.82/oz in the third quarter, coupled
with the relatively stable availability of power
during the third quarter, also supported gold
production.

Q1

Q2

Q3

Q4

Q1

Q2

Q3
Pigs Slaughtered 28973327003663240878411374187443191

PIGS SLAUGHTERED (000)

Small scale producers delivered a total of
2 535 kg of gold during the third quarter of
2016, compared to 2 066 kg delivered during
the same period in 2015. Large scale miners
delivered 3 155 kg during the third quarter of
2016, compared to 2 892 kg during the same
period
in
2015,
as
shown
in
Figure 14.

Figure 14: Quarterly Gold Deliveries

Source: Fidelity Printers and Refineries, Chamber
of Mines 2016

Cumulative gold output stood at 16 139kg
during the first nine months of 2016 - 13.5%
more than the 14 223kg produced during the
same period in 2015.

Improved cash allocations to Fidelity Printers
and Refiners helped to increase gold deliveries,
while the 5% incentive on exports reduced
diversion of gold to the informal market.
Delays in the procurement of key raw
materials, however, adversely affected the
large scale producers.

The continued slump in investment towards
exploration activities remains a major setback
on the potential of the mining sector, as access
to high ore grades by producers is restricted.

Platinum
Platinum output stood at 2 863 kg in the third
quarter of 2016, down from 3 479 kg produced
in the same period in 2015. Output was also
lower than the 3 647 kg produced during the
second quarter of 2016.

The
decrease
in
platinum
output
was
attributable to the furnace shut down for a
periodic matte - end wall rebuild in July 2016
at Zimplats, which resulted in a 15% reduction
in operating time.

Cumulative platinum output as at end
September 2016 was 10 831 kg, up from the
9 040 kg produced during the same period in
2015. Figure 15 shows the quarterly platinum
output and average international prices for
2015 and 2016.

Figure 15: Quarterly Platinum Output (kg)

Source: Chamber of Mines, 2016.

Diamond
Diamond output stood at 526 430 carats in the
third quarter of 2016, up from 481 008 carats

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Av Price (US$/Ounce
Primary Producers
Small Scale Produders
PGMs Gold
Av price(USD/ounce)

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Platinum
Average Price (US$/ounce)

produced during the second quarter. The
diamond output for the quarter under review
was, however, lower than the output for the
comparable
period
in
2015.
Diamond
production statistics for 2015 and 2016 are
shown in Figure 16.

Figure 16: Quarterly Diamond Production
(Carats)
Source: Ministry of Mines and Mining Development
Diamond production continued to be weighed
down by the transitional bottlenecks at
Chiadzwa, following the consolidation of
diamond mining firms into the state-owned
Zimbabwe Consolidated Diamond Company
(ZCDC). The subsequent legal wrangles
regarding the consolidation, coupled with
undercapitalisation of the ZCDC, have delayed
the complete resumption of operations.

Nickel
During the third quarter of 2016, nickel output
totaled 4 099 tonnes, with 46% coming from
primary production, while the remainder was
from PGMs. This compares favorably with the
4 056 tonnes produced in the comparable
period of 2015. Output was, however, lower
than the 4 227 tonnes realised during the
second quarter of 2016.

Cumulative nickel output amounted to 13 200
tonnes during the first nine months of 2016, up
from the 11 973 tonnes produced in the
comparable period in 2015.

The increase in nickel output was attributed to
the ramp up in production by both the primary
and the secondary producers. This was in
response to the increase in international prices
of the metal to an average of US$10 262/ tonne
during the third quarter of 2016, from an
average of US$8 815/tonne in the second
quarter. The average nickel price has risen by
about 20%, from the beginning of the year to
September 2016.

Figure 17 show trends in nickel output and
prices in 2015 and 2016.

Figure 17: Quarterly Nickel Output (tonnes)

Source: Chamber of Mines, 2016


Q1

Q2

Q3

Q4

Q1

Q2

Q3


Q1

Q2

Q3

Q4

Q1

Q2

Q3

Nickel \t
Average Price (US$/t)

Coal
Coal output at 920 701 tonnes during the third
quarter of 2016, was 20.1% lower than the
1 152 499 tonnes produced in the comparable
period in 2015. Cumulatively, coal output
amounted to 2 204 829 tonnes over the period
January to September 2016.

Coal production was adversely affected by
weak demand in the domestic economy,
underpinned by the sustained decline in
capacity utilisation and company closures,
mainly in the manufacturing industry. In
addition, challenges relating to the debt
overhang and non-payment for deliveries by
key consumers also weighed down production.

Chrome
Total chrome ore produced during the third
quarter of 2016 was 64 113 tonnes, up from the
35 289 tonnes produced in the second quarter.
In the comparable period in 2015 chrome
output stood at 77 044 tonnes. The rebound in
chrome output in the third quarter of 2016 was
largely attributed to the gradual improvement
in both chrome ore and ferrochrome prices. The
European benchmark price for ferrochrome for
the third quarter of 2016 increased by 19%,
from 82USc/lb Cr to 98USc/lb Cr delivered
Europe.

The price increase was on account of the
shortage of chrome ore and ferrochrome,
following the shutdown of three smelters by
large ferrochrome producers in South Africa.

Chrome ore output continued to be adversely
affected by the shortage of working capital, the
absence of proper technology to extract from
narrow seams in the Great Dyke; and the recent
liquidity crunch that is threatening viability of
operations. The anticipated redistribution of
Government acquired chrome claims from
ZIMASCO to small scale miners is, however,
expected to boost production.

Manufacturing
The manufacturing sector is projected to grow
by 0.3% in 2016, on account of expected
improvements in capacity utilisation in some
sub-sectors. The promulgation of Statutory
Instrument 64 (SI 64) of 2016, in addition to
Statutory Instrument 18-20 (SI 18-20) of
2014/15, which removed more goods that are
locally available from Open General Import
Licence exemption, is expected to promote
domestic production of basic and essential
commodities and create scope for enhanced
industrialisation.

The positive impact of the SI 64 of 2016 has
been reported in sub-sectors such as baking,
fruits and vegetables, iron and steel fabrication,
pharmaceuticals, oil expressing, and furniture
manufacturing.

Results from the retail surveys conducted by
the Ministry of Industry and Commerce during
the quarter under analysis showed that shelf
space occupancy space was around 70% and
30% for locally produced goods and imported
goods, respectively.


Company Closures
According to data obtained from the Master of
the High Court, a total of 14 companies were
placed under judicial management, while 20
were liquidated during the third quarter of
2016. Most liquidations witnessed were in the
manufacturing sector.

Table 8: Companies under Judicial
Management & Liquidation
Year
Q2

Q3

Q4

Q2

Q3

Judicial
Management

Liquidation

Source: Master of High Court, 2016
Retrenchments
A total of 1 175 retrenchments were witnessed,
during the third quarter of 2016, compared to
1 340 in the comparative period in 2015. Figure
18 shows quarterly retrenchment figures, from
the first quarter of 2013 to the third quarter of
2016.
Figure 18: Retrenchments by Quarter

Source: Master of High Court, 2016
Electricity Energy
Electricity sent out from local power stations
decreased to 1758.24 GWh in the third quarter
of 2016, compared to the 1887.92 GWh in the
second quarter. The outturn fell short of the
targeted output of 1,935.10GWh by 9.14%,
largely due to the fall in output at Hwange and
the small thermal power stations, namely;
Munyati and Bulawayo. The thermal power
stations also experienced coal supply shortages
and frequent machinery breakdowns.
Table 9 shows the outturn of electricity
generation in 2016.

Table 9: Electricity Energy Sent Out (GWh)
Power Station
Q1
Q2
Q3
Kariba
702.75
695.35
753.11
Hwange
933.31
1,059.59 912.39
Bulawayo
34.75
41.15
16.13
Munyati
35.85
44.45
26.25
Harare
44.52
47.38
50.35
IPPs
26.03
33.43
111.05
Total
1,751.18 1,887.92 1,758.24
Source: Zimbabwe Power Company, 2016

Cumulative power generation to September
2016 at 5426.59 GWh, was 25.9% lower than
what was generated in the same period in 2015.
The decline was partially attributable to low
water levels at Lake Kariba, which culminated
in the rationing of water allocated for power
generation by the Zambezi Water Authority.
Figure 19 compares the electricity generation
by month in 2015 and 2016.

Figure 19: Electricity Energy Sent Out (GWh)
(2015 – 2016)


Source: Zimbabwe Power Company, 2016

2013:Q1
2013:Q2
2013:Q3
2013:Q4
2014:Q1
2014:Q2
2014:Q3
2014:Q4
2015:Q1
2015:Q2
2015:Q3
2015:Q4
2016:Q1
2016:Q2
2016:Q3

Jan
Feb
Mar
Apr
May
Jun
jul
Aug
Sep
Electricity Generated (GWh)

Independent
Power
Producers
increased
output, due to the coming on board of the
100MW Dema emergency diesel power plant,
which was commissioned during the third
quarter of 2016. Cumulative output from
Independent Power Producers for the period
January to September increased from 47.1
GWh in 2015, to 170.5 GWh in 2016.

INFLATION DEVELOPMENTS
Annual headline inflation, which has been in
negative territory since the beginning of the
year, accelerated from an average of -1.57% in
the second quarter to an average of -1.45% in
the third quarter of 2016. This was on account
of both food and non-food inflation.
Despite the increase in inflation during the
third quarter, deflationary pressures still persist
in the economy, largely underpinned by the
continued downward correction in prices,
waning domestic demand and the depreciation
of the South African rand.
Figure 20 shows average annual inflation, on a
quarterly basis, from March 2015 to September
2016.
Figure 20: Quarterly Average Annual Inflation
Profile (%) (2015-2016)

Source: ZIMSTAT, October 2016
Annual Food Inflation
Annual food inflation rose to an average of
-3.35% during the third quarter of 2016, from
an average of -4.06% in the second quarter,
largely driven by increases in the prices of
sugar, jam, honey, chocolate and confectionery
items. The increases were partially offset by
declines in the prices of meat; bread and
cereals; milk, cheese and eggs; and vegetables,
among others.
Annual Non Food Inflation
Annual non-food inflation decelerated from an
average of -0.38% in the second quarter, to an
average of -0.57% in the third quarter of 2016.
This followed declines in furniture, household
equipment
and
maintenance;
transport;
housing, water, electricity, gas and other fuels;
and communication, among others. The
increase in education during the third quarter,
however, partially offset the declines.
Regional Inflation
Zimbabwe’s inflation was the lowest and the
only one in negative territory in the SADC
region, as shown in Table 10.
The September 2016 annual inflation rate of
-1.4% was significantly lower than the SADC
end period inflation rate of 11.9%, as measured
by the National Harmonised Consumer Price
Indices.


Q2-2015
Q3-2015
Q4-2015
Q1-2016
Q2-2016
Q3-2016

Table 10: Annual Inflation rates (%) for
Selected SADC Countries measured by
HCPIs

Weight
Dec

Mar

Jun

Sep

Zimbabwe

South Africa

Botswana

Mozambique

Tanzania

Zambia

Malawi

HCPI
100.00


Source: Country Central Bank Websites, 2016

Inflation Outlook
Quarterly annualised inflation, which has
remained in negative territory since January
2016, points to the persistence of deflationary
pressures in the short to medium term. The
chart below shows the quarterly annualised
inflation profile since March 2014.

Figure 21: Quarterly Annualized Inflation
Profile (%)
Source: RBZ, July 2016
FISCAL DEVELOPMENTS
Fiscal developments during the nine months to
September 2016 resulted in cumulative
revenue inflows of US$2 591.6 million, against
expenditures of US$3 483.1 million. This
resulted in a budget deficit of US$891.5
million, which was financed through domestic
sources. The deficit reflected subdued revenue
collections arising from the subdued economic
activity.

Government Revenue

Cumulative Government revenue to September
2016 stood at US$2 592 million, against a
target of US$2 851 million, resulting in a
negative variance of US$259.9 million. This
also represented a 3.2% decline from the
US$2 676 million collected during the same
period in 2015.
Cumulative
tax
revenues
amounted
to
US$ 2 396 million for the nine month period to
the end of September 2016, falling short of the
target of US$2 672 million by US$275.2
million.
Taxes
on
incomes
and
profits
at
US$948.7 million contributed about 37% to
total revenues, while value added tax
accounted for about 27%, at US$700.4 million.
Excise and Customs duties amounted to
US$473.2 million and US$200.3 million,
contributing about 18% and 8% to total
revenues,
respectively.
Non-tax
revenue
accounted for 7% of cumulative Government
revenue during the same period.

Figure 22 shows the contribution of the various
revenue heads to cumulative Government

Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16

revenue for the nine months to September
2016.
Figure 22: Contribution of Revenue Heads to
Government Revenue (January to September

Source: Ministry of Finance & Economic
Development, October 2016

Government Expenditure
Cumulative
Government
expenditure
at
US$3 483 million for the nine months to end
September 2016, significantly exceeded the
target of US$2 994 million. Cumulative
recurrent expenditure to September 2016 was
US$2 923 million - 5.0% higher than the target
of US$2 718 million. Total employment costs
at US$2 139 million, accounted for 84% and
70.5%, of recurrent and total expenditures,
respectively
Recurrent expenditure continued to dominate
Government
expenditure,
accounting
for
83.9% of total expenditure for the period under
review.
Cumulative capital expenditure and net
lending, which accounted for 16.1% of total
expenditure, amounted to US$560.2 million,
against a target of US$212.2 million.

Figure
23:
Structure
of
Government
Expenditure

Source: Ministry of Finance & Economic
Development, October 2016
4.
MONETARY DEVELOPMENTS,
INTEREST RATES AND
FINANCIAL MARKETS

Monetary Developments
Broad
money
grew
by
3.51%,
from
US$5 140.7 million in the second quarter of
2016, to US$5 320.9 million in the third
quarter. On a year on year basis, money supply
grew by 16.02%, from US$4 586.02 million in
September 2015.
Taxes on
Incomes
and
Profits
37%
Customs
Duties
8%
Excise
duties
18%
VAT
27%
Other
Indirect
Taxes
3%
Non Tax
Revenues
7%
Employment
Costs
70%
Operations &
Maintainance
11%
Interest
Repayments
3%
Capital
expenditure
16%

The growth in money supply was broadly
driven by quarterly increases in demand
deposits, 6.6%; savings deposits, 2.9%; and
over
30-days
deposits,
1.9%.
Partially
offsetting these increases was a 6.4% decline in
under 30-days deposits.
The slowdown in money supply growth, from
4.55% in the second quarter to 3.51% in the
third quarter, in part, reflected the end of the
tobacco selling season a major source of
liquidity in the economy.
Figure 24 shows annual broad money supply in
nominal terms as well as growth rates.

Figure 24 : Annual Broad Money Supply
Growth Rates and Levels

Source: RBZ, 2016
Domestic Credit
Credit extended to the private sector has
continued on a downward trend, registering a
decrease of 2.74% in the second quarter of
2016; and a further decline of 1.44% in the
third quarter, from US$3 571.6 million in June
2016 to US$3 520.3 million in September
2016. Since the last quarter of 2015, private
sector credit growth has, generally, weakened
due to cautionary lending by banks as well as
waning economic activities.
Outstanding credit to the private sector was
distributed as follows: households (23.6%);
agriculture
(18.1%);
services
(14.8%);
manufacturing (15.2%); distribution (12.5%);
financial
organisations
and
investments
(6.1%);
mining
(5.3%);
transport
and
communications (2.3%); and construction
(1.6%).


Interest Rates
During the period under review, nominal
lending rates quoted by banks ranged between
6% and 18%. The range was in accordance
with the guidelines prescribed by the Central
Bank in the second half of 2015. Banks were,
however, expected to lower their lending rates
to range between 5% and 15% as per the new
guidelines put in place by the Central Bank in
the monetary policy measures announced in
April 2016.
During the quarter under review, the average
90-days deposit rate declined by 0.35
percentage points from 6.14% to 5.79%.
Notably, in the first quarter of 2016, 90-day
deposit rates were at 7.00%. The decline,
partially reflected banks’ low appetite for
costly
deposits,
in
an
environment
characterised by waning lending activities.

STOCK MARKET DEVELOPMENTS

The prevailing economic challenges have
weighed down performance of the Zimbabwe
Stock Exchange (ZSE). As a consequence, the

Money Supply Growth
US$ Billion
Demand Deposits
Savings
Short Term Deposits
Long Term Deposits
Bond Coins
Annual Growth

ZSE lost US$55.8 million worth of market
capitalisation. This was a 2.01% decline, from
US$2.78 billion at the end of June 2016, to
US$2.73 billion as at end September 2016.
Cumulatively, over the year to September
2016, the ZSE lost US$0.72 billion worth of
capitalisation. Figure 25 shows the trend in
Market Capitalisation.


Figure 25 : Market Capitalisation

Source: Zimbabwe Stock Exchange, 2016

Industrial Index
During the quarter under review, the industrial
index declined by 2.08 points, from 101.04
points as at end June 2016, to 98.96 points as at
end September 2016. On a year-on-year basis,
the industrial index softened by 32.97 points,
from 131.93 points in 2015, as shown in
Figure 26.


Figure 26: Zimbabwe Stock Exchange Indices

Source: Zimbabwe Stock Exchange, 2016

Mining Index
Investor interest in mining counters was
adversely affected by challenges facing the
mining sector for the better part of the third
quarter of 2016. The challenges included weak
international commodity prices and the
projected slowdown in global economic
growth.

During the quarter under review, however,
there was renewed investor interest in RioZim
and Bindura Nickel Corporation (BNC),
underpinned by positive growth prospects for
the mining companies.

As a result, the resources index increased by
1.91 points, from 24.70 points as at end June
2016, to close the third quarter of 2016 at 26.61
points. On a year-on-year basis, the mining
index increased by 2.25 points.


30-Sep-15
31-Oct-15
30-Nov-15
31-Dec-15
31-Jan-16
29-Feb-16
31-Mar-16
30-Apr-16
31-May-16
30-Jun-16
31-Jul-16
31-Aug-16
30-Sep-16
US$ Millions

Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Mining
Industrial
Industrial Index
Mining Index

Market Turnover
During the third quarter of 2016, the ZSE trade
was skewed towards blue chip counters such as
Delta, Econet, Innscor Africa, Old Mutual Plc
and National Foods. In light of the continuous
reduction in market value, there was significant
interest in blue chip counters as investors
rebalanced their portfolios in a bid to preserve
their wealth.

The 30.45% decline in market turnover to
US$32 million realised in the quarter ending
September 2016, was a reflection of the
challenges in the economy, which resulted in
disinvestment by foreign investors, coupled
with weak local investment. Consequently,
there was an increase in net outflows to
US$16.20 million in the third quarter,
compared to US$6.88 million in the quarter
ending June 2016.

The volume of shares traded declined by
55.57%, from 375 429 648 in the second
quarter of 2016 to 166 816 578 shares during
the third quarter.

Figure 27: Market Turnover Value

Source: Zimbabwe Stock Exchange, 2016
5.
PAYMENT, CLEARING AND
SETTLEMENT ACTIVITIES

The value of transactions processed through the
National Payment Systems increased by 4% to
US$15.69 billion in the third quarter of 2016,
from US$15.08 billion recorded in the quarter
ending June 2016. Similarly, transaction
volumes
also
increased
by
20%
to
94.84 million in the third quarter of 2016, from
78.85 million in the second quarter.

Cheque and ATMs payment streams recorded
decreases in values during the quarter under
review, while RTGS, POS, Internet and mobile
registered
increased.
The
corresponding
volumes, however, registered increases during
the third quarter of 2016, compared to the
second quarter.

Table 11 provides the statistical information on
various payment streams for the third quarter
ending September 2016.

US$ Millions

Table 11: Consolidated Transactional
Activities
Payment
stream
Second
quarter
ending 30
June 2016
Third
quarter
ending 30
September

Change
from
last
quarter
Proportion

US$ Millions


RTGS

CHEQUE

POS

ATMS

MOBILE

INTERNET

TOTAL

VOLUMES
RTGS

CHEQUE

POS

ATMs

MOBILE

INTERNET

TOTAL

Source: RBZ, 2016
Large Value Payments
Zimbabwe
Electronic
Transfer
and
Settlement System
The value of transactions processed through the
RTGS system for the quarter ending September
2016 stood at US$12.22 billion, from
US$11.96 billion recorded in the quarter
ending June 2016. Transaction volumes
registered a 25% increase, to close the quarter
under review at 784,834 as shown in figure in
Figure 28.


Figure 28 : RTGS Values and Volumes

Source: RBZ, 2016

SWIFT Foreign Currency Transactions
SWIFT foreign currency payments decreased
by 9% to US$1.09 billion for the quarter ending
September 2016, from US$1.19 billion in the
quarter ending June 2016. During the same
period, SWIFT foreign currency receipts also
decreased by 12% to US$1.16 billion, from
US$1.33 billion.

Net foreign currency inflows amounted to
US$75.26 million during the quarter under
review. Figure 29 shows trends in swift
foreign currency transactions.


Q2

Q3

Q4

Q1

Q2

Q3
RTGS Values in Billions
RTGS Volumes in Thousands
Values

Figure 29: SWIFT Cross Border Transactions

Source: RBZ, 2016
Over the Counter Cash Withdrawals
The value of cash withdrawals decreased by
22%, from USD1.98 billion during the quarter
ending June 2016, to USD1.54 billion recorded
in quarter ending September 2016. The
corresponding volumes, however, increased by
31% from 4.24 million to 4.25 million as
shown in Figure 30.


Figure 30: Over the Counter Cash
Withdrawals.

Source: RBZ, 2016


Retail Payments
The trends in values and volumes of retail
transactions from the quarter ending June 2015
to quarter ending September 2016 indicate that
POS have now overtaken ATM transactions, as
shown in Figures 31 and 32.


2015Q1
2015Q2
2015Q3
2015Q4
2016Q1
2016Q2
2016Q3
Volumes in Thousands
Value in US$B
Value of Receipts
Value of Payments
Volumes of Payments
Volumes of Receipts

US$ BILLIONS
MILLIONS
Volumes
Values

Figure 31: Values of Retail Transactions

Source: RBZ, 2016

Figure 32 : Volumes of Retail Transactions

Source: RBZ, 2016

2The collateral figure comprises of cheque and
Zimswitch card payment stream amounts.
Collateral2
The value of collateral increased to USD17.26
million in the third quarter ending September
2016, from US$13.15 million recorded in the
quarter ending June 2016, as shown in Figure
33.

Figure 33 :Total Collateral

Source: RBZ, 2016
Access Points and Devices
There was a general increase in access points
and access devices between the second and
third quarters of 2016. The increase was
attributable to the national drive to increase
electronic means of payment. Existing market
players have taken heed of the policy direction
to provide mechanisms that encourage usage


Q2

Q3

Q4

Q1

Q2

Q3
US$ Millions
CHEQUE
POS


Q2

Q3

Q4

Q1

Q2

Q3
Mobile Volumes in Millions
Other Retai Volumes in Millions
CHEQUE
POS
ATMs

Q2

Q3

Q4

Q1

Q2

Q3
US$ MILLIONS

and uptake of electronic means of payment to
the transacting public.
Table 12 shows statistics for access points and
devices for the third quarter of 2015, as well as
for the second and third quarters of 2016.
Table 12: Payment Systems Access Points and
Devices
PAYMENT SYSTEMS
ACCESS POINTS


Q3 2015
Q2 2016
Q3 2016
Mobile
Banking
Agents
32,528
34,351
37,131
ATMs

POS
16,268
19,280
24,111
PAYMENT SYSTEMS
ACCESS DEVICES

Debit Cards
2,292,969
2,724,317
2,890,731
Credit Cards
10,809
14,299
14,813
Prepaid Cards
28,226
30,339
38,660
Active Mobile
Banking
Subscribers
4,306,198
3,212,561
3,289,271
Internet
Banking
Subscribers
96,983
115,478
128,297
Source: RBZ, 2016
RESERVE BANK OF ZIMBABWE
DECEMBER 2016

STATISTICAL TABLES

1.
Liabilities and Assets of the Central Bank
1.1. Reserve Bank: Liabilities


S3
1.2. Reserve Bank: Assets


S4

2.
Liabilities and Assets of Other Depository Corporations
2.1. Commercial Banks: Assets


S5
2.2. Commercial Banks: Liabilities


S6
2.3. Accepting Houses: Assets


S7
2.4. Accepting Houses: Liabilities


S8
2.5. Building Societies: Assets


S9
2.6. Building Societies: Liabilities


S10

3.
Money Supply and Bank Liquidity
3.1. Monetary Aggregates


S11
3.2. Broad Money Survey


S12
3.3. Analysis of Monthly Changes in Money Supply


S13
3.4. Analysis of Yearly Changes in Money Supply


S14
3.5. Sectoral Analysis of Commercial Banks’ Loans and Advances


S15
3.6. Sectoral Analysis of Commercial Bank’s Deposits


S16

4.
National Payment Systems


4.1. Values of Transactions


S17
4.2. Volumes of Transactions


S17

5.
Interest Rates, Security Yields and Prices
5.1. Lending Rates


S18
5.2. Deposit Rates


S18
5.3. Stock Exchange Indices


S19
5.4. Monthly Inflation


S20
5.5. Quarterly Inflation


S21
5.6. Annual Inflation


S22

6.
Balance of Payments
6.1. Cross Border Payments


S23
6.2. Cross Border Receipts


S24
6.3. External Debt Outstanding By Debtor


S25
6.4. External Debt Outstanding by Source


S26
6.5. External Debt Service and Debt Service Ratios


S27

7.
National Accounts
7.1. Real Gross Domestic and National Product per Capita at Market Prices

S28
7.2. Gross Domestic Product at Factor Cost by Industry


S29
7.3. Expenditure on Gross Domestic Product


S20
7.4. Mineral Production


S21
7.5. Electricity Produced and Distributed
S32
7.6. Volume of Manufacturing Index


S33


TABLE 1.1: RESERVE BANK - LIABILITIES
Capital
and
Foreign
general
End of
Notes and
Bankers Deposits
Other Deposits
Govt. Deposits
Total Deposits
Liabilities
reserve
Other Liabilities
TOTAL
coins* in
circulation


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

*Bond coins first issued in December 2014
Source: Reserve Bank of Zimbabwe, 2016
Deposits
US$ Thousands


S2


US$ Thousands
End of
Gold
Other
Total
Treasury Bills
Central
Banks
Other
Govt.
Other
Other Assets
TOTAL
Government
Stock


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Source: Reserve Bank of Zimbabwe, 2016
Loans and advances
Investments
Foreign Assets
TABLE 1.2: RESERVE BANK - ASSETS


S3


Loans &
Contingent
Other
Non
Financial
Total
End of
Bond
Coins
Foreign
Notes
Total
Other
Balances
Advances
Assets
Assets
Assets
Assets
&
Balances
Balances
Balances
Liquid
with RBZ
Coin
with
with Other
at
Trade
Treasury
Agric PEs
Assets
at Banks
RBZ
Banks
Foreign
Bills
Bills


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source: Reserve Bank of Zimbabwe, 2016
TABLE 2.1: COMMERCIAL BANKS - ASSETS
US$ Millions
Liquid Assets
Securities


S4


Deposits
Amounts
Owing to
Capital
Contingent
Other
Total
Of which
and
Liabilities
Liabilities
Liabilities
Liabilities to
the
End of
Demand
Savings and
Short-term
Long-term
Total
Foreign
Liabilities
RBZ
Other Banks
Reserves
Public
Deposits


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source: Reserve Bank of Zimbabwe, 2016
TABLE 2.2: COMMERCIAL BANKS - LIABILITIES
US$ Millions


S5


Liquid Assets
Loans &
Contingent
Other
Non Financial
Total
End of
Notes
Total
Other
Balances
Advances
Assets
Assets
Assets
Assets
Bond
Coins
&
Balances
Balances
Balances
Liquid
with RBZ
Coin
with
with Other
at
Trade
Treasury
Assets
at Banks
RBZ
Banks
Foreign
Banks
Bills
Bills


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source:Reserve Bank of Zimbabwe, 2016
TABLE 2.3 : ACCEPTING HOUSES - ASSETS
US$ Millions


S6


Of which
Deposits
Amounts
Owing to
Capital
Contingent
Other
Total
Liabilities to the
and
Liabilities
Liabilities
Liabilities
Public
End of
Demand
Savings and
Short-term
Long-term
Total
Foreign
Liabilities
RBZ
Other Banks
Reserves
Deposits


36.9
31.2

68.1

-17.9
0.1
49.7

68.1

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source:Reserve Bank of Zimbabwe, 2016
TABLE 2.4: ACCEPTING HOUSES - LIABILITIES
US$ Millions


Liquid
Assets
Notes
Balances
Trade
Treasury
Total
Mortgage
Other
Other
Non Financial
Total
End of
Bond Coins
&
with Other
Bills
Bills
Liquid
Advances
Advances
Assets
Assets
Assets
Coin
Banks
Assets
at Banks


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source:Reserve Bank of Zimbabwe, 2016
TABLE 2.5: BUILDING SOCIETIES- ASSETS
US$ Millions
Of which
Deposits
Capital
Other
Total
Liabilities to
the
and
Liabilities
Liabilities
Public
End of
Savings and
Short-term
Long-term
Total
Reserves
Deposits


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source:Reserve Bank of Zimbabwe, 2016
TABLE 2.6 : BUILDING SOCIETIES - LIABILITIES
US$ Millions


S9


End of
Bond
Coins
RBZ
Demand
Deposits
Comm.
Banks Dem.
Deposits
Merchant
Banks
Dem.
Deposits
M1
Comm.
Banks
Savings
Deposits
Building
Soc.
Savings
Deposits
P O S B
Savings
Deposits
Comm.
Banks U-30
Day
Deposits
Merchant
Banks U-30
Day Deposits
Building
Soc. U- 30
Day
Deposits
M2
Comm.
Banks O-30
Day
Deposits
Merchant
Banks O30 Day
Deposits
Building
Soc. O- 30
Day
Deposits
Building
Soc. Class
C
Deposits
Building
Soc.
Other
Share
Deposits
P O S B
Time
Deposits
M3


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source:Reserve Bank of Zimbabwe, 2016
Note:
RBZ - Reserve Bank of Zimbabwe
DMBs - Deposit Money Banks (Commercial Banks and Merchant Banks)
OBIs - Other Banking institutions (Building Sicieties)
TABLE 3.1: MONETARY AGGREGATES
US$ Thousands


S10


US$ Thousands
End of
NET FOREIGN
ASSETS
Total Foreign
Assets
Liabilities \2
NET
DOMESTIC
ASSETS
DOMESTIC
CREDIT
Claims on
Government
(net)
RBZ
DMBs
OBIs
Claims on
Public
Enterprises
Claims on
Private
Sector
RBZ
DMBs
OBIs
OTHER
ITEMS
(NET)
BROAD
MONEY
(M3)

-278,784.49
1,072,911.46


-140,293.98
1,174,644.56


-296,486.94
1,055,987.41


-435,528.84
1,089,808.49


-810,172.35
1,042,165.96


-1,750,112.68
(132,686.92)


Jan
-714,190.62
830,959.41


Feb
-763,306.53
737,833.47


Mar
-565,959.32
816,079.57


Apr
-636,028.06
755,493.40


May
-681,066.49
811,200.44


Jun
-775,512.62
926,353.71


Jul
-723,772.77
843,689.23


Aug
-727,785.66
867,447.06


Sep
-715,689.39
889,018.56


Oct
-822,417.21
784,372.60


Nov
-771,547.97
667,350.67


Dec
-683,664.57
796,212.39


Jan
-688,591.44
758,634.57


Feb
-780,139.70
679,001.86


Mar
-728,823.68
687,149.82


Apr
-803,151.98
637,447.51


May
-897,595.53
623,538.08


Jun
-682,717.98
667,173.21


Jul
-569,021.47
663,489.32


Aug
-572,883.43
661,991.90


Sep
-572,131.98
636,418.94


Source:Reserve Bank of Zimbabwe, 2016
Note:
RBZ - Reserve Bank of Zimbabwe
DMBs - Deposit Money Banks (Commercial Banks and Merchant Banks)
OBIs - Other Banking institutions (Building Sicieties)
TABLE 3.2: BROAD MONEY SURVEY


S11


End of
NET
FOREIGN
ASSETS
Total
Foreign
Assets
Liabilities
NET
DOMESTIC
ASSETS
DOMESTIC
CREDIT
Claims on
Government
(net)
RBZ
DMBs

OBIs
Claims on
Public
Enterprises
Claims on
Private
Sector
RBZ
DMBs
OBIs
OTHER
ITEMS
(NET)
BROAD
MONEY
(M3)

Broad
Money
(M3)

Domestic
Credit

Claims
on
Private
Sector


40,492.90
62,580.06


Jan

Feb

Mar
197,347.21
78,246.10


Apr

May
-45,038.42
55,707.04


Jun
-94,446.14
115,153.27


Jul

Aug
-4,012.89
23,757.82


Sep
12,096.27
21,571.50


Oct

Nov

Dec
87,883.40
128,861.72


Jan
-20,906.51
(34,042.69)


Feb
-91,548.26
(79,632.71)


Mar
51,316.02
8,147.96


Apr
-74,328.30
(49,702.30)


May
67,954.04
(13,909.43)


Jun
214,877.55
43,635.12


Jul
113,696.51
(3,683.89)


Aug
-3,861.96
(1,497.42)


Sep
751.45
(25,572.96)


Source:Reserve Bank of Zimbabwe, 2016
Note:
RBZ - Reserve Bank of Zimbabwe
DMBs - Deposit Money Banks (Commercial Banks and Merchant Banks)
OBIs - Other Banking institutions (Building Sicieties)
TABLE 3.3: ANALYSIS OF MONTHLY CHANGES IN MONEY SUPPLY
US$ Thousands


S12


End of
NET
FOREIGN
ASSETS
Total
Foreign
Assets
Liabilities
RBZ

DMBs

OBIs
NET
DOMESTIC
ASSETS
DOMESTIC
CREDIT
Claims on
Government
(net)
RBZ
DMBs

OBIs
Claims on
Public
Enterprises
Claims on
Private
Sector

RBZ

DMBs

OBIs
OTHER
ITEMS
(NET)
BROAD
MONEY (M3)

Broad
Money
(M3)

Domestic
Credit

Claims
on
Private
Sector


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source:Reserve Bank of Zimbabwe, 2016
Note:
RBZ - Reserve Bank of Zimbabwe
DMBs - Deposit Money Banks (Commercial Banks and Merchant Banks)
OBIs - Other Banking institutions (Building Sicieties)
TABLE 3.4: ANALYSIS OF YEARLY CHANGES IN MONEY SUPPLY
US$ Thousands


S13


A GR IC U LTU R E
C ON S TR U C TION
C OM M U N IC A TION
D IS TR IB U TION
FIN A N C IA L
FIN A N C IA L
M A N U FA C TU R IN G
M IN IN G
S ER V IC ES
TR A N S POR T
IN D IV ID U A LS
C ON GLOM ER A TES
TOTA L
End o f

IN V ES TM EN T
OR GA N IS A TION S


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source:Reserve Bank of Zimbabwe,2016
TABLE 3.5: Sectoral Analysis of Commerical Banks' Loans and Advances
US$ Thousands


S14


AGRICULTURE CONSTRUCTION COMMUNICATION
DISTRIBUTION
FINANCIAL
FINANCIAL
MANUFACTURING
MINING
SERVICES
TRANSPORT INDIVIDUALS CONGLOMERATES
TOTAL
End of

INVESTMENT
ORGANISATIONS

61,792.7

6,467.2

35,365.8

81,470.7

45,127.5

68,001.8

111,397.9

30,218.3

480,954.6

14,728.8

180,117.5

3,415.5

1,119,058.5

113,727.1

13,189.9

52,087.1

195,080.2

84,886.8

146,548.7

144,660.9

67,916.4

504,291.2

17,349.7

300,489.1

5,962.4

1,646,189.5

120,665.7

35,860.2

107,439.2

295,439.3

94,854.2

277,933.7

267,305.3

69,436.0

518,311.2

24,462.2

444,051.7

15,849.9

2,271,608.5

96,098.4

50,492.7

126,343.5

379,068.0

198,323.3

509,241.6

280,975.4

95,457.1

582,286.2

41,852.2

538,135.2

26,491.3

2,924,764.8

94,346.3

52,722.4

141,401.4

338,625.9

223,223.8

754,145.4

339,305.6

99,583.3

754,116.1

41,527.2

440,197.9

97,771.1

3,376,966.4

147,242.4

60,358.1

118,725.7

328,729.5

325,746.6

950,304.9

290,329.3

118,977.8

964,815.0

47,574.3

638,061.1

92,040.8

4,082,906.3

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source:Reserve Bank of Zimbabwe,2016
TABLE 3.6: Sectoral Analysis of Commercial Banks' Deposits
US$ Thousands


S15


End of
ZETSS
CHEQUE
POS
ATM
MOBILE
INTERNET
End of
ZETSS
CHEQUE
POS
ATM
MOBILE
INTERNET

Jan

Jan

Feb

Feb

Mar

Mar

Apr

Apr

May

May

Jun

Jun

Jul

Jul

Aug

Aug

Sep

Sep

Oct

Oct

Nov

Nov

Dec

Dec

Annual
Total

Annual
Total


Jan

Jan

Feb

Feb

Mar

Mar

Apr

Apr

May

May

Jun

Jun

Jul

Jul

Aug

Aug

Sep

Sep

Source:Reserve Bank of Zimbabwe,2016
TABLE 4.1 : ZETSS AND RETAIL PAYMENTS TRANSACTIONAL ACTIVITY
Values of Transactions (US$ in millions)
TABLE 4.2 : ZETSS AND RETAIL PAYMENTS TRANSACTIONAL ACTIVITY
Volumes of Transactions (in thousands)


End of
Nominal Lending
Rates2
Individuals
Corporate
Savings
3 Months

Jan
6.00-35.00
14.16
9.66
Jan
0.15-8.00
3.00-17.00
Feb
4.30-33.50

9.73
Feb
0.50-12.00
1.00-17.00
Mar
4.30-33.50
13.24
8.75
Mar
0.50-12.00
1.00-17.00
Apr
4.30-31.00
12.71
8.84
Apr
0.30-8.00
1.00-17.00
May
5.00-31.00
12.74
8.79
May
0.30-8.00
1.00-17.00
Jun
5.00-31.00
11.94
8.42
Jun
0.30-8.00
1.00-17.00
Jul
5.00-31.00
11.86
8.56
Jul
0.30-8.00
1.00-15.00
Aug
4.30-26.00
11.96
8.51
Aug
0.30-8.00
1.00-15.00
Sep
4.30-25.00
11.81
8.47
Sep
0.30-8.00
1.00-16.00
Oct
4.00-18.00
10.98
7.28
Oct
0.50-8.00
1.00-17.00
Nov
4.00-16.25
12.2
7.67
Nov
0.75-8.00
1.00-17.00
Dec
6.00-16.00
11.99
7.57
Dec
0.50-8.00
0.75-17.00

Jan
6.00-22.00
12.08
7.38
Jan
0.50-8.00
0.75-17.00
Feb
4.00-22.00
11.48
7.29
Feb
0.50-8.00
0.75-17.00
Mar
4.00-22.00
11.44
7.16
Mar
0.50-8.00
0.75-17.00
Apr
4.00-22.00
11.5
7.2
Apr
0.50-8.00
0.75-17.00
May
4.00-18.00
11.43
7.35
May
0.50-8.00
0.75-17.00
Jun
4.00-18.00
11.4
7.48
Jun
0.50-6.00
0.75-17.00
Jul
4.00-18.00
10.69
6.79
Jul
0.50-6.00
0.75-17.00
Aug
4.00-18.00
10.67
6.84
Aug
0.50-6.00
1.00-17.00
Sep
4.00-18.00
10.66
6.95
Sep
0.50-6.00
1.00-17.00
Source:Reserve Bank of Zimbabwe,2016
Notes
TABLE 5.2 : BANKS DEPOSIT RATES (percent per annum)1
1. The range of rates qouted by banks during the
period.
2. Three (3) months deposit rates revised to exclude
rates on inactive or dormant accounts.
TABLE 5.1: LENDING RATES (percent per annum)1
1. Table revised, to separate weighted lending rates for
individuals and corporate bodies.
2. Nominal Lending Rates depict the range of rates quoted by
banks.
Weighted Average Lending Rates3
Commercial Banks
Commercial Banks
End of


US$ Millions
End of
Industrial
Mining
Market Capitalisation

Jan
164.90
58.13
4,365.14
Feb
167.16
55.38
4,353.38
Mar
158.22
43.92
4,117.08
Apr
156.23
42.93
4,066.07
May
152.96
44.45
3,978.06
Jun
148.4
44.3
3,803.80
Jul
145.35
39.36
3,812.65
Aug
135.43
35.34
3,552.02
Sep
131.93
24.36
3,444.50
Oct
130.83
23.57
3,416.11
Nov
117.55
22.33
3,141.68
Dec
114.85
23.72
3,073.41

Jan
103.04
19.53
2,790.40
Feb
99.40
19.14
2,692.30
Mar
97.17
19.53
2,645.06
Apr
105.79
20.16
2,862.61
May
104.70
25.54
2,881.34
Jun
101.04
24.70
2,780.90
Jul
98.84
25.72
2,772.04
Aug
99.47
26.32
2,734.33
Sep
98.96
26.61
2,725.13
TABLE: 5.3: ZIMBABWE STOCK MARKET STATISTICS
Source: Zimbabwe Stock Exchange (ZSE),2016
Indices


S18


FOOD
INFLATION
ALL
ALCOHOLIC
BEVERAGES
CLOTHING
HSING,
WATER,
FURNITURE
HEALTH
TRANSPORT
COMMUNICATION
RECREATION &
EDUCATION
RESTAURANTS
&
MISC.
TOTAL
NON
FOOD &
ITEMS
& TOBACCO
FOOTWEAR
ELECTRICTY,
GAS
AND
CULTURE
HOTELS
GOODS &
FOOD
NON
ALCOHOLIC
BEVERAGES
& OTHER
EQUIPMENT
SERVICES
FUELS
WEIGHTS


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source :ZIMSTATS, 2016
NON-FOOD INFLATION
TABLE 5.4 : MONTHLY INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX \1
( DECEMBER 2012 = 100)


S19


FOOD
INFLATION
ALL
ALCOHOLIC
BEVERAGES
CLOTHING
HSING,
WATER,
FURNITURE
HEALTH
TRANSPORT
COMMUNICATI
ON
RECREATION &
EDUCATION
RESTAURANT
S &
MISC.
TOTAL NON
FOOD &
ITEMS
& TOBACCO
FOOTWEAR
ELECTRICTY,
GAS
AND
CULTURE
HOTELS
GOODS &
FOOD
NON
ALCOHOLIC
BEVERAGES
& OTHER
EQUIPMENT
SERVICES
FUELS
WEIGHTS


Jan

Feb

MAr

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source :ZIMSTATS, 2016
TABLE 5.5 : QUARTERLY INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX \1
( DECEMBER 2012 = 100)
NON-FOOD INFLATION


S20


FOOD INFLATION
ALL
ALCOHOLIC
BEVERAGES
CLOTHING
HSING, WATER,
FURNITURE
HEALTH
TRANSPORT
COMMUNIC
ATION
RECREATION &
EDUCATION
RESTAURAN
TS &
MISC.
TOTAL
NON
FOOD &
ITEMS
& TOBACCO
FOOTWEAR
ELECTRICTY,
GAS
AND
CULTURE
HOTELS
GOODS &
FOOD
NON ALCOHOLIC
BEVERAGES
& OTHER
EQUIPMENT
SERVICES
FUELS
WEIGHTS


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source :ZIMSTATS,2016
TABLE 5.6 : ANNUAL INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX \1
( DECEMBER 2012 = 100)
NON-FOOD INFLATION


S21


End of
Jun-15
Jul-15
Aug-15
Sep-15 Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Merchandise Imports (excl. energy)
304.8

294.0

221.7

339.1

302.0

272.3

264.4

240.3

225.0

212.1

232.4

172.9

247.2

209.1

263.6

226.5

- Consumption Goods
162.8

158.0

138.1

184.1

153.2

141.6

141.9

128.3

119.4

113.5

109.4

86.8

115.5

100.3

126.0

121.5

- Capital Goods
90.4

85.8

38.8

109.6

102.6

93.6

73.2

68.0

67.0

65.6

62.6

44.8

66.7

52.1

62.5

48.0

- Intermediate Goods
51.6

50.2

44.8

45.4

46.2

37.1

49.3

44.0

38.7

33.0

60.4

41.3

65.1

56.7

75.1

57.0

Energy (Fuel & Electricity)
85.0

89.1

65.4

127.0

70.6

71.2

76.1

62.9

62.7

56.2

59.1

42.6

76.3

65.5

67.1

56.6

Service Payments
116.1

126.7

140.6

127.3

129.9

109.6

133.4

111.1

89.5

91.5

102.5

104.0

85.2

99.9

122.1

74.5

- Technical, Professional & consult
65.1

61.4

48.3

63.6

76.0

56.6

76.6

46.7

38.1

42.3

59.7

64.1

39.8

52.6

66.9

37.7

- Software
5.2

6.3

4.4

4.7

5.2

5.6

5.7

7.2

6.8

5.4

5.0

5.5

10.1

15.4

6.4

3.0

- Other (tourism, edu, freight etc)
45.8

59.0

87.8

59.0

48.8

47.4

51.1

57.2

44.6

43.8

37.8

34.4

35.3

31.9

48.7

33.8

Income Payments (Profits, Dividends
47.4

63.6

46.5

38.2

26.0

24.7

29.0

22.4

17.6

12.7

18.4

6.4

25.9

11.3

9.0

7.9

Capital Remittances (outward)
113.5

84.1

54.2

88.2

72.0

85.1

78.4

71.4

61.6

65.9

55.6

45.6

37.8

34.4

28.6

49.9

- External Loan Repayments
91.6

68.8

44.9

60.8

55.1

54.9

59.9

48.1

43.0

55.0

45.2

35.5

21.4

28.8

17.0

43.1

- Foreign Investment
21.9

15.2

9.3

27.4

16.9

30.1

18.5

23.3

18.6

10.9

10.4

10.1

16.4

5.6

11.6

6.8

Other Payments
0.3

1.0

0.9

0.6

1.6

0.7

0.7

0.5

1.0

0.8

1.0

0.2

0.5

0.7

0.2

1.9

TOTAL
667.1

658.4

529.3

720.5

602.2

563.5

582.0

508.5

457.4

439.2

469.2

371.7

472.8

420.9

490.6

417.3

Source: Reserve Bank of Zimbabwe, 2016
Table 6.1: Monthly Cross Border Payments (US$ Millions)


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Agriculture
Horticulture Manufacturing
Mining
Tobacco
Tourism
Transport &
Other Services
Total
End of
Telecom
Jan-15
14.6

2.2

31.4

214.0

108.3

7.3

39.8

0.7

418.1

Feb-15
14.4

1.0

27.4

142.2

55.8

7.6

44.6

0.1

293.1

Mar-15
18.4

3.3

25.2

161.9

27.9

10.1

31.3

0.4

278.4

Apr-15
8.9

1.9

17.4

166.0

63.1

10.6

38.0

2.0

307.8

May-15
10.3

1.8

22.8

154.0

25.4

12.5

16.4

0.1

243.2

Jun-15
10.6

1.3

21.9

195.9

14.1

12.6

27.7

2.7

286.8

Jul-15
12.6

2.3

30.3

100.1

16.1

16.7

26.0

0.5

204.5

Aug-15
11.7

1.5

14.1

148.4

17.8

16.1

17.0

0.3

226.9

Sep-15
18.1

2.9

28.0

150.1

66.2

15.7

22.8

0.5

304.2

Oct-15
10.2

2.1

23.8

56.6

21.9

14.0

39.2

9.3

177.1

Nov-15
8.5

2.8

19.2

68.2

36.0

11.0

144.1

0.4

290.1

Dec-15
19.3

1.7

23.8

231.4

32.3

10.0

21.4

0.2

339.9

Jan-16
10.4

1.9

12.0

149.9

121.6

0.00
15.3

3.4

296.7

Feb-16
15.4

2.2

11.3

64.6

42.5

4.9

20.6

1.9

136.6

Mar-16
15.5

2.2

10.5

202.9

29.9

4.7

23.0

7.9

262.1

Apr-16
7.9

2.9

7.2

69.2

84.3

9.9

12.3

0.2

193.9

May-16
9.2

2.3

13.0

206.9

21.9

14.5

20.2

0.2

288.2

Jun-16
6.9

1.7

9.2

101.4

18.4

13.2

18.4

4.0

173.2

Jul-16
8.6

2.1

9.1

258.2

6.8

13.1

12.4

2.3

312.6

Aug-16
15.3

4.8

8.2

187.6

10.2

16.1

21.4

1.0

264.6

Sep-16
13.8

5.8

8.6

151.5

9.7

19.1

19.8

3.1

231.4

Source: Reserve Bank of Zimbabwe, 2016
Table 6.2: Monthly Cross Border Receipts (Millions)


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End of

Long-Term External Debt

Government

Bilateral Creditors

Multilateral Creditors

Private Creditors

Public Enterprises


Bilateral Creditors

1,155

Multilateral Creditors

Private Creditors

Monetary Authorities

Multilateral Creditors - IMF

Private

1,002
2,261
1,913
Short-Term External Debt

1,198
1,382
1,286

1,564
2,394
2,258
Supplier's Credits

Reserve Bank

Private

1,807
1,671
Total External Debt

Source: Ministry of Finance & Economic Development, 2016 ; Reserve Bank of Zimbabwe, 2016
TABLE 6.3: ZIMBABWE: EXTERNAL DEBT OUTSTANDING BY DEBTOR
(US$ millions)


S24


End of

(US$ millions)
Total Medium to Long-Term External Debt

Public and Publicly Guaranteed Debt

Bilateral Creditors

Multilateral Creditors

Private Creditors

Private Non-Guaranteed Long term

1,002
2,261
1,913
Short-Term External Debt

1,286

1,564
2,394
2,258
Public and Publicly Guaranteed Debt

Reserve Bank

Private

1,807
1,671
Total External Debt

Gross Domestic Product


External Debt / GDP

Source: Ministry of Finance & Economic Development, 2016 ; Reserve Bank of Zimbabwe, 2016
TABLE 6.4: External Debt Outstanding by Source
(US$ millions)

S


TABLE 6.5 EXTERNAL DEBT SERVICE AND DEBT SERVICE RATIOS
(US$ MILLIONS)
End of

Government

173.3
Capital

130.4
Interest

Parastatals

Capital

Interest

Private

418.1
Capital

Interest

163.1
Total

591.4
Capital

385.4
Interest

Exports of Goods
and Services

3841.9
Debt Service ratio

Capital Service Ratio

Interest Service ratio

Note: Figures reflect scheduled debt service.

Source: Ministry of Finance & Economic Development, 2016 ; Reserve Bank of Zimbabwe, 2016


S26


TABLE 7.1: REAL GROSS DOMESTIC AND NATIONAL PRODUCT PER CAPITA AT MARKET PRICES
US$ Millions
Gross
Net Investment Gross
Gross
Gross
Domestic
Income Paid
National
Domestic National
Gross Domestic
Gross national
End of
Product
to Other
Product
Product Product
Product
Product
Period
Countries


Source : Zimstat, 2016
Current Prices
Constant Prices
Constant Prices
Per Capita


S27


Agriculture
Mining
Electricity
Finance
Distribution
Transport
Public
Hunting and
and
Manufacturing and
Construction
and
Real
Hotels and
and
Administration
Other
End of
Fishing
Quarrying
Water
Insurance Estate Restaurants Communication
Education
Health
Services
Total

10494

11400

12213
Source : Zimstat, 2016
2 . Includes domestic services and allowance for imputed banking service charges .
TABLE 7.2 : GROSS DOMESTIC PRODUCT AT FACTOR COST BY INDUSTRY
US$ Millions
(at current prices )


S28


Net
Private
Gross
Net
Expenditure
Private
Gvt
non-profit
fixed
Increase
Total
export of
on gross
consumption current
making
captital
in
Statistical
domestic
goods and
domestic
End of
expenditure bodies
formation
stocks
discrepancy
expenditure
services
product


Source : Zimstat, 2016
(at current prices)
US$ Millions
TABLE 7.3: EXPENDITURE ON GROSS DOMESTIC PRODUCT/1

S


End of
Gold
Platinum
Palladium
Nickel
Copper
Coal
Chrome
Rhodium Other/1
Total


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Source: Zimstat, 2016
1. Other minerals include Ferrosilicon, Iron ore, Iron pyrites and magnesite
Table 7.4: MINERAL PRODUCTION
US$ Millions

S


End of
By Hwange
Power station
By Kariba
Power
Station
By Other
Power Station
IPPs
Total from
Zimbabwe

2,635.6

5,762.8

74.5

-
8,472.9

3,420.0

5,201.8

397.4

-
9,019.2

3,133.2

5,387.3

442.1

-
8,962.7

3,826.9

4,981.8

506.1

-
9,314.8

3,460.2

5,402.4

559.3
28.9

9,814.9

3,945.9

4,939.2

583.1

43.0

9,511.2

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Source:Zimstat ,2016
Table 7.5: Electricity Energy Produced and Distributed
Interconnected System
Generation Sent Out


S31


(2009=100)
Food-stuffs
(including
stockfeeds)
Drink and
Tobacco
Textiles
including
ginning
Clothing
and
Footwear
Wood and
Furniture
Paper,
Printing and
Publishing
Chemical and
Petroleum
Products
Non-metalic
Mineral Products
Metals and
Metal Products
Transport and
Transport
Equipment
Other
Manufacturing
Groups
All
Manufacturing
Groups
Weight

Mean


Mean


Mean


Mean

2014:Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2015:Jan

Feb

Mar

Apr

May

Jun

Source:Zimstat ,2016
TABLE 7.6: VOLUME OF MANUFACTURING INDEX (VMI)


S32