QUARTERLY
ECONOMIC
REVIEW


SEPTEMBER 2017

RESERVE BANK OF ZIMBABWE

CONTENTS

List of Figures

List of Tables

1. OVERVIEW
The International Monetary Fund still projects the
global economy to grow by 3.6% in 2017 and
3.7% in 2018, from 3.2% recorded in 2016.
Growth is projected to rise in emerging market
and developing economies in 2017 and 2018,
supported by improved external factors, a good
global financial environment and recovery in
advanced economies.

The domestic economy is projected to register a
positive growth of 3.7% in 2017, underpinned by
strong performance in the agriculture and mining
sectors. The economy is also responding
positively to interventions by Government and the
central bank to increase domestic production and
exports.
According
to
the

CZI
Manufacturing Sector Survey, manufacturing
output volume grew by 5.5%, as sectors under the
import
management
program,
have
taken
advantage of the protection rendered through
Statutory Instrument 64 to recapitalise and
increase production.
On the inflation front, headline inflation
accelerated to 0.78% in September 2017, from
0.14% in both July and August 2017, driven by
both food and non-food inflation. The increase in
inflation was indicative of speculative pricing
triggered by significant increases in the parallel
foreign exchange market premiums.
Total merchandise trade stood at US$2,316.9
million during the third quarter of 2017, up from
US$2,125.8 million recorded in the second
quarter of 2017. Total merchandise exports for the
third quarter of 2017, increased by 24.8% to
US$947.3 million, from US$759.1 million
recorded in the second quarter 2017, largely on
account of increases in exports of tobacco and
gold.

1 Under the multiple currency system, broad money is
defined as total bank deposits less interbank deposits and
also includes Bond notes and coins issued.
Merchandise imports for the third quarter of 2017
were 0.2% higher, compared to the second quarter
of 2017.The marginal rise was due to increases in
imports of electricity (30.9%); diesel (10.4%); and
unleaded petrol (0.6%).
Broad money supply1 recorded an increase of
14.92% in the third quarter of 2017, from
US$6 491.7 million in June 2017 to $7 460.2
million in the quarter ending September 2017. Net
domestic credit increased by 11.9%, from
US$8 773.5 million in the second quarter of 2017,
to US$9 819 million in the third quarter.
During the quarter under review, the Zimbabwe
Stock Exchange (ZSE) remained bullish as
investors flocked to the local bourse, owing to
limited alternative investment options. Trading
activity on the stock market continued to be
skewed towards wealth preserving counters.

In line with the trading activity on the ZSE, the
industrial index surged by 113.50%, from 195.97
points as at 30th June 2017, to 418.39 points as at
the end of the third quarter of 2017, while the
mining index grew by 75.63% to close at 122.57
points. As a result, capitalization on the local
bourse increased by 335.22% to US$11.86 billion
as at the end of the third quarter of 2017, from
US$5.69 billion as at the end of the second
quarter.
Reflecting increased use of plastic money, the
value of transactions processed through the
National Payment Systems (NPS) increased by
23% to US$26.26 billion in the third quarter
ending 30th September 2017, from US$21.42
billion recorded in the quarter ending 30th June
2017. In tandem, the NPS transaction volumes
increased by 44% to 287.5 million in the third of
September 2017, from 199.9 million during the
second quarter.

2. INTERNATIONAL
ECONOMIC
DEVELOPMENTS

The IMF projects global growth to rise to 3.6% in
2017 and 3.7% in 2018, in its September 2017
World Economic Outlook (WEO) report. The
growth forecasts for both 2017 and 2018 are 0.1
percentage points higher, compared to the initial
projections in the April 2017 WEO report.

Broad-based upward revisions from the initial
projections in the April 2017 WEO report, were
made for the Euro area, Japan, emerging Asia,
emerging Europe, and Russia, where growth
outcomes in the first half of 2017 were better than
expected. The strong growth in these economies
more than offset downward revisions for the
United States and the United Kingdom. Economic
growth, however, remains weak in many
countries, with inflation below target in most
advanced economies.

Growth is projected to rise in 2017 and 2018 in
emerging market and developing economies,
supported by improved external factors, a good
global financial environment and recovery in
advanced economies. Growth in China and other
parts of emerging Asia remains strong, while the
still-difficult
conditions
faced
by
several
commodity exporters in Latin America, the
Commonwealth of Independent States, and subSaharan Africa show some signs of improvement.

The
growth
prospects
for
emerging
and
developing economies are up by 0.1 percentage
points for both 2017 and 2018, primarily owing to
a stronger growth projection for China. China’s
2017 forecast of 6.8 percent, reflects stronger
growth outturn in the first half of 2017 as well as
more buoyant external demand.
Table

shows
global
economic
growth
developments for selected regions and countries.

Table 1: Global Economic Growth & Outlook
(%)


Actuals
Projections

World
Output

Advanced
Economies

US


Eurozone

Japan

Emerging
Market
&
Developing
Economies

China

India

SubSaharan
Africa

Latin
America &
Caribbean

Source: IMF World Economic Outlook Update
(October 2017 Update).

Economic Outlook in Sub-Saharan Africa

Economic growth in Sub-Saharan Africa is
projected at 2.6% in 2017 and 3.4% in 2018, with
sizable differences across countries.

Downside risks have risen because of idiosyncratic
factors in the region’s largest economies and
delays in implementing policy adjustments.
Beyond the near term, growth is expected to rise
gradually, but barely above population growth, as
large consolidation needs weigh in on public
spending.

Nigeria is expected to emerge from the 2016
recession caused by low oil prices and the
disruption of oil production. Growth in 2017 is
projected at 0.8%, owing to recovering oil
production and ongoing strength in the agricultural
sector.
However,
concerns
about
policy
implementation, market segmentation in a foreign
exchange market that remains dependent on central
bank interventions, despite initial steps to liberalize
the foreign exchange market, and banking-system
fragilities are expected to weigh down activity in
the medium term.

In South Africa, growth is projected to remain
subdued, at 0.7% in 2017 and 1.1% in 2018,
despite more favorable commodity export prices
and strong agricultural production. Heightened
political uncertainty continues to sap consumer and
business confidence.

The regional economies continued to face a
number of similar challenges in the most recent
past, which include rising debt levels and crowding
out of the private sector, since most of the countries
are reliant on public sector spending to support
growth. The increase in debt has been driven by
widening fiscal deficits, slow growth, declining
commodity prices and exchange rate depreciations
in other countries.

INTERNATIONAL COMMODITY PRICE
DEVELOPMENTS

During the third quarter of 2017, international
prices for most commodities generally firmed
from their average second quarter levels, with
notable increases recorded in base metals, on the
back of brighter demand prospects in China, the
world’s largest user of base metals. Table 2 shows
developments in international prices for selected
commodities during the second and third quarters
of 2017.

Table 2: International Commodity Prices


Gold
Platinum
Copper
Nickel
Brent
crude
oil

US$/oz
US $/oz
US $/ton
US $/ton
US
$/bar
Q2 Average

Jul-17

Aug-17

Sep-17

Q3 Average

% Change

Source: Bloomberg, BBC, Kitco 2017

Brent Crude Oil
Crude oil prices recorded quarterly gains,
following indications that global crude oil
inventories, particularly in the US were declining.
The rally in crude oil prices during the period
under analysis also reflected efforts by OPEC

member States to curb production as Saudi
Arabia, the organisation’s biggest producer,
announced further cuts in shipments as part of its
pledge to curb output, to reduce a global glut.
Correspondingly, crude oil firmed by 3.0%, to a
quarterly average of US$52.29/barrel from
US$50.79/barrel recorded in the second quarter of
2017. Figure 1 shows the monthly evolution of
crude oil prices for the period January to
September 2017.
Figure 1: Brent Crude Oil Prices US$/Barrel:
January to September 2017


Source: Bloomberg, 2017

Base Metals
Base metal prices surged during the quarter under
review, buoyed by the positive demand outlook in
China, the world’s largest base metal consumer.
Robust economic data showed that the Asian
giant’s economy was on course to achieve its 2017
growth target. The Chinese economy expanded at
a faster-than-expected rate of 6.9% in the second
quarter of 2017. Resultantly, copper and nickel
prices rebounded by 12.3% and 14.1% to
US$6,360.29/tonne and US$10,553.57/tonne,
respectively, between the second and third
quarters of 2017, as shown in Figure 2.
Figure 2: Base Metal Prices (US$/ tonne):
January 2016 to September 2017


Source: Bloomberg, 2017

Precious Metals
Precious metal prices firmed during the third
quarter of 2017, on account of safe haven demand,
amid rising uncertainties over US relations with
North Korea, following a series of missile tests by
the latter. Gold prices were also buoyed by lower
long-term U.S. interest rates and lack of progress
by President Donald Trump, in delivering
economic reforms.
Gold and platinum prices rose by 1.6% and 1.3%
to quarterly averages of US$1,278.12/oz and
US$952.87/oz, respectively. Figure 3 shows
developments in gold and platinum prices.


10000
12000

Copper
Nickel

Figure 3: Precious Minerals Prices: January to
September 2017


Source: Bloomberg, 2017
MERCHANDISE TRADE
DEVELOPMENTS
Total merchandise trade stood at US$2,316.9
million during the third quarter of 2017,
representing 20.7% increase from the US$1,919.9
million recorded in the corresponding quarter in
2016. On a quarter on quarter basis, total
merchandise trade, also rose by 9.0%, from
US$2,125.8 million in the second quarter to
US$2,316.9 million in the third quarter of 2017.
Merchandise export developments
Over the period July to September 2017,
merchandise exports increased by 48.8%, to
US$947.3 million, from US$636.8 million
realized during the comparable period 2016, as
illustrated in Figure 4.


Figure 4: Third Quarter Total Merchandise
Exports (July to September 2016
&2017)

Source: ZIMSTAT, 2017

Compared to the second quarter of 2017, exports
increased by 24.8% in the third quarter of 2017,
largely on account of improvements in exports of
tobacco and gold.
Gold, flue-cured tobacco, nickel
ores
&
concentrates, ferrochrome, diamonds and chrome
ores & concentrates were the country’s major
export commodities, contributing about 70% of
export earnings during the quarter under review,
as shown in Table 3.

1,000
1,200
1,400
Gold
Platinum
636.8
947.3

Table 3: Exports Classified by HS Code (US$
millions) & Share of Total
exports for 2017 Q2 & Q3 2017
(%)
Commodity

Q2

Q3

Q2-Q3

Q3


US$ m
US$ m
Change
(%)
Share
(%)
Gold

Flue-cured
tobacco
(Virginia
type)

Nickel
ores
and
concentrates

Ferrochrome

Industrial
diamonds

Chromium
ores
and
concentrates

Ginned
cotton

Unwrought
Platinum

Cane sugar

Other

Total
759.1
947.3
24.8

Source: Zimstat, 2016 & RBZ calculations, 2017


Major Merchandise Export Destinations
The country’s exports for the third quarter of 2017
were
mainly
destined
for
South
Africa,
Mozambique, United Arab Emirates, Zambia,
Kenya and Belgium, as shown in Table 4 below.
Table 4: Major Export Destinations (%)
Merchandise Export
Shares
(Q2 2017)
Merchandise Export Shares
(Q3 2017)
South Africa
70.2
South Africa
60.0
Mozambique
16.7
Mozambique
12.2
United Arab
Emirates
5.4
United Arab
Emirates
9.0
Zambia
3.0
Belgium
2.3
Kenya
1.3
Zambia
1.7
Belgium
1.2
Botswana
0.6
Botswana
0.8
Kenya
0.6
Other
1.4
Other
13.6
Total

Total

Source: Zimstat & RBZ computations
South Africa continued to dominate the country’s
export destinations absorbing about 60.0% of the
country’s total merchandise exports during the
third quarter of 2017, followed by Mozambique,
at 12.2%. The country mainly exports platinum
group of metals (PGMs), gold and nickel to South
Africa. Exports to the other destinations in the
world constituted about 13.6 of the total exports
during the third quarter of 2017.

Merchandise Import Developments
Total merchandise imports for the third quarter of
2017 amounted to US$1,369.7 million, a 6.7%
increase from US$1,283.1 million realized over
the comparative quarter in 2016, as shown in
Figure 5.
Figure 5: Merchandise Imports (US$ m)

Merchandise imports for the third quarter of 2017
were 0.2% higher, compared to the second quarter
of 2017. The marginal quarterly increases were on
account of increases in imports of electricity
(30.9%); diesel (10.4%); and unleaded petrol
(0.6%).
Maize and wheat imports were, however, lower
than those imported in the preceding quarter
owing to a favourable 2016/17 agricultural
season.
Major Import Sources
During the period July to September 2017, the
country obtained its imports largely from South
Africa (41.5%), Singapore (20.9%), China
(7.3%), UK (4.5%) and Japan (2.7%). The major
imports from South Africa largely consisted of
capital, intermediate and consumer goods.
Trade balance
Against the background of the aforementioned
merchandise trade developments, the country’s
trade balance improved from a deficit of
US$607.7 million during the second quarter of
2017, to a deficit of US$422.4 million in the third
quarter of 2017, as shown in Figure 6.
Figure 6: Trade Balance for 2017 Q2 and Q3
(US$ m)

Source: ZIMSTAT & RBZ Computations
The country continues to experience significant
deficits on the trade account as the high import bill
outweighs export earnings, thus draining liquidity
from the economy. The rather poor export
performance is largely attributed to lack of
competitiveness of the country’s products, while
low domestic production entails the absorption of
1,283.1
1,369.7

July-September

July-September


Exports
Imports
Trade Balance
2017 Q2
2017 Q3

a huge amount of imports. In this regard, there is
need to attract both domestic and foreign
investment
to
rejuvenate
industry,
make
significant competitiveness gains and generate
adequate foreign exchange buffers to cushion the
economy from external shocks.

3. DOMESTIC ECONOMIC
DEVELOPMENTS

REAL SECTOR DEVELOPMENTS
The economy is projected to grow by 3.7% in
2017, largely driven by agriculture, mining,
construction and electricity and water, among
others.
Figure 7 shows developments in real GDP for the
period 2009 to 2017.
Figure 7: Real GDP Growth (%): 2009-2016
and 2017 Projection

Source: Zimstat, MoFED and RBZ 2017
In the Regional Economic Outlook Report,
launched on 30th October, 2017 in Harare, the IMF
projects the Zimbabwean economy to grow by
2.8% in 2017. Economic growth, according to the
IMF, continues to be weighed down by demand
factors such as continuing foreign currency
shortages; cash shortages; and adverse inflation
expectations; among other downside risks.

AGRICULTURE
The 2017 growth projection for agriculture has
been revised downwards, from 21.6% to 15.9%,
owing to the lower than anticipated performance
of the tobacco and cotton crops. Other crops such
as cereals, however, fared better than the previous
season, largely due to a good rainfall season and
improved financing by Government and private
sector players. Table 5 shows the performance of
major crops in 2016 and revised estimates for
2017.

Table 5: Output of selected key food and cash
crops (ton)
Crop
2016/17
2015/16
%
Change
Tobacco
188 920
202 285
-6.6
Maize
2 155 526
511 816

Sorghum
182 012
36 305

Pearl Millet
82 663
22 539

Finger Millet
24 107
17 613

Irish Potato
476 088
438 354

Groundnut
139 503
73 709

Sweet Potato
513 070
203 697

Sugar Beans
15 356
12 742

Cowpeas
35 895
14 026

Cucurbits
69487
33 700

Cotton
73 034
28425

Soya bean


Source: Ministry of Agriculture, 2017
Tobacco
Seasonal tobacco sales amounted to 188.9 million
kg in 2017, compared to 202.3 million kg in 2016.
Tobacco output declined, due to incessant rains
that affected the production of the leaf crop,
through water logging and higher disease
incidence. The excessive rains also resulted in
false leaf ripening, which reduced the quality of
this season’s crop. Table 6 shows the final tobacco
output statistics for the 2016 and 2017 selling
seasons.

Table 6: Comparison of tobacco sales in 2016
and 2017

%
Variance
Quantity
sold (kg)

202,275,688

188,920,318

-6.61
Value (US$)

595,927,523

559,119,986

-6.18
Price
US$/kg
2.95
2.96

0.34
Production
Target

170 000 000

215 000 000

Source: Tobacco Industry and Marketing Board, 2017

Cotton
Seed cotton output is expected at 73 034 tonnes in
2017, up from 28 425 tonnes produced in 2016.
The increase was largely due to improved
financing under a 3-year Government programme
aimed at resuscitating the crop, amidst efforts to
revamp the cotton-to-clothing value chain. Cotton
farmers also benefitted from an increase in the
price paid for the crop, which went up to
US45c/kg, from the US36c/kg offered in 2016.


Wheat
The total area planted under wheat in 2017
increased to 44 598 hectares, compared to 14 220
hectares in 2016, largely due to improved
financing for the crop, under the Command
Agriculture initiative, which availed crop inputs
for about 30 731 hectares. The remainder of the
planted area of around 14 000 hectares was
contracted by private players and traditional
wheat
producers.
Wheat
harvesting
has
commenced countrywide, with most of the crop at
the drying stage and the late planted crop in the
hard dough stage.

Wheat output is projected to surpass 150 000
tonnes in 2017, up from the 61 715 tonnes
produced in 2016. The winter wheat season
benefited from ample water supplies given the
high dam levels as well as stable power supply
which supported irrigation activities. Wheat yield
is, however, expected to be compromised by the
entrance of relatively inexperienced farmers who
were attracted by the financing availed through
the
Command
Agriculture
Programme.
Resultantly, national wheat yield is expected to
fall short of the 4.34 tonnes per hectare achieved
in 2016.

Livestock Slaughters
Meat production declined significantly over the
period from January to September 2017,
compared to the same period in 2016, as reflected
by the fall in livestock slaughters across all
livestock classes at formal abattoirs. The decline
in slaughters is attributed to farmers withholding

stock, following improved grazing conditions, as
well as improved viability for pig farmers. Table
7 shows the decline in slaughter statistics for
cattle, pigs, sheep and goats in 2016 and 2017.

Table 7: Cumulative livestock slaughters as at
30 September 2017

Cattle
Pigs
Sheep and
Goats

215 499
126 202
19 852

197 457
113 770
17 143
% change
-8
-10
-14
Source: Ministry of Agriculture, Mechanisation and
Irrigation Development

Cattle
Cattle slaughters at formal abattoirs increased
marginally, from 67 813 head in the second
quarter to 68 876 head in the third quarter of 2017.
Despite the slight quarter to quarter increase,
cattle slaughters generally remained below the
2016 levels. At 68 876 head, third quarter
slaughters declined significantly from 76 650
head in 2016. The Cold Storage Company
accounted for about 6% of formal cattle slaughters
during the third quarter of 2017.


Figure 8: Quarterly Cattle Slaughters

Source: Ministry of Agriculture, Mechanisation and
Irrigation Development

Pigs
Pig slaughters declined from 39 826 in the second
quarter of 2017, to 35 942 during the third quarter.
Compared to the same period in 2016, the 2017
third quarter slaughters were 16.8 % lower. The
decline in pork output in 2017 can be attributed to
the destocking of parent material by farmers
facing viability challenges.

Figure 9: Quarterly Pig Slaughters

Source: Ministry of Agriculture, Mechanisation and
Irrigation Development


Q1
Q2
Q3


Q1
Q2
Q3

Milk Production
Milk production, which was subdued during the
first quarter of 2017, as incessant rainfall affected
animal health and led to reduced output, recovered
in the third quarter of 2017. Consequently, 17.4
million litres were produced in the third quarter,
up 11.4% from 15.6 million litres in the second
quarter of 2017 and 3.5% higher than production
in the third quarter of 2016. Figure 10 shows the
quarterly milk production outturn for 2016 and
2017, up to the third quarter.

Figure 10: Quarterly Fresh Milk Output
Source: Dairy Services, 2017


2017/2018 Rainfall Forecast
In line with the regional forecasts, the
Meteorological Department gave a positive
outlook for the 2017/18 rainfall season, which is
expected to have adequate rainfall to support crop
and livestock production, albeit with some risk of
moisture stress during the production season.
During the first half of the season, October to end
December 2017, the Meteorological Region I,
which
comprises
of
Harare,
much
of
Mashonaland
East,
Mashonaland
West,
Mashonaland Central, north eastern parts of
Midlands, and most of Manicaland is expected to
receive normal to above normal rainfall. Regions
II and III which include the Matabeleland North,
Matabeleland South, Masvingo, Midlands, parts
of Mashonaland West, and the extreme southern
parts of Manicaland are expected to have normal
to below normal rainfall in the first half of the
season.
The whole country is, however, expected to
receive normal to above normal rainfall during the
second half of the season, from 1st January 2018
to 30th March 2018. The Meteorological
Department has also warned of the possibility of
adverse weather phenomenon such as cyclones
and flash floods, which could pose some threats to
agricultural production, particularly during the
second half of the season.
MINING
Output for most of the key minerals, with the
exception of PGMs and nickel, registered positive
growth during the third quarter of 2017, compared
to the same period in 2016. Diamond, coal,
chrome and gold led the rebound. Table 8 shows
the output of selected minerals during the quarter
under review.


Q1
Q2
Q3
Millions

Table 8: Quarterly Mining Production Statistics


Jan-Sept

Jan-Sept

Varianc
e Q3
2016 &
Q3 2017
(%)
Gold (kg)
16,589
18,332
10.6
Chrome*
(tonnes)
401,664
1,224,820
204.9
Coal (tonnes)
2,015,853
2,358,549

Nickel (tonnes)
13,200
12,475
-5.5
Platinum (kg)
10,831
10,125
-6.5
Palladium (kg)
8,760
8,362
-4.5
Diamonds
(Carats)
1,445,910
2,016,283
40.2
*Chrome ore are exports
Source: Ministry of Mines, Chamber of Mines, MMCZ, 2017

Reflecting the strong mineral output performance
and favourable prices for some minerals such as
gold, mineral export revenue stood at US$1.8
billion, representing 68.1% of the country’s total
exports as at 30 September 2017. This figure is
25% higher than mineral exports revenues
realized during the same period in 2016.
Gold

Gold output stood at 7 504 kg in the third quarter
of 2017, up by 24% from the 6 040 kg produced
in the comparable period in 2016. Cumulatively,
gold output rose by 10.6% to 18 332 kg as at the
end of the third quarter of 2017, from 16 589 kg
registered during the same period in 2016. Figure
11 shows the monthly gold deliveries to Fidelity
Printers and Refineries (FPR) for the first nine
months of 2016 and 2017.
Figure 11: Gold deliveries to FPR: Q2 2016 vs
Q2 2017

Source: FPR, 2017

Gold production was mainly driven by both large
and small scale producers who boosted output.
The third quarter output was dominated by small
scale miners who contributed an average of 54%,
compared to the 42% from large scale producers.
Small scale gold miners’ contribution largely
benefited from utilisation of the gold facilities that
were unveiled by FPR as well as the continued
monitoring and surveillance by the Gold
mobilisation team that managed to minimise gold
leakages.
Gold production could be further boosted by the
following:


Reducing custom milling licence fees which
are currently prohibitive;

Promoting and incentivising investment in
exploration to improve ore grades which are
less costly to process;

Improving small scale miners’ access to
adequate proper mining equipment to ensure
availability of ore irrespective of the
waterlogging conditions that led to the

Jan
Feb Mar Apr May Jun
Jul
Aug Sep
Kg

postponement of mining activities during
the first half of 2017;

Facilitating access to better technologies and
technical knowledge to improve recoveries,
especially from treatment of slimes and
sands;

Reigning in on unregistered hammer millers
who offer services at a cheaper price and
lesser legal requirements and divert ore from
the formal system;

Availing more foreign currency to producers
to facilitate sustained access to key
consumables.

Chrome

Chrome exports stood at 540 683 tonnes in the
third quarter of 2017, about 191% more than the
185 742 tonnes recorded during the same period
in 2016. On a cumulative basis, chrome exports
increased by 204.9% from 401 664 tonnes during
the period Jan-September 2016, to 1 224 820 in
the comparable period in 2017.

Figure 12 show the monthly exports for raw
chrome ore as well as developments in
international prices of the mineral.


Figure 12: Trends in chrome ore exports &
average ore prices

Source: MMCZ, 2017
Chrome output was adversely affected by
unfavourable prices, particularly for raw chrome,
which declined during the second part of the third
quarter of 2017. HCF prices appeared to have
bottomed out by end July 2017 and have been
trending upwards. The upward trend in HCF
prices presents value addition opportunities for
the country, which could result in increased export
earnings.

Coal
Coal output at 1.086 million tonnes during the
third quarter of 2017, was 46% above the 743 798
tonnes produced during the same period in 2016.
Cumulatively, coal output amounted to 2.36
million tonnes for the period Jan-Sept 2017,
which is 17% more than the 2.02 million tonnes
realised in the comparative period in 2016. The
increase in output was largely driven by the
ramping up of production across all mining
entities, whose contributions are shown in Figure
13.

Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
US$/ tonne
''000' tonnes
Chrome ore
Chrome ore Price

Figure 13: Contribution of mining entities to
total coal output: Jan-Sept 2017

Source: Coal Producers, 2017, Ministry of Mines,

Platinum
A total of 2 881 kg of platinum was produced
during the third quarter of 2017, about 0.6% above
the 2 863 kg produced during the same period in
2016. Cumulative platinum output for the first
nine months of 2017 at 10 125 kg was, however,
6.5% lower than the 10 831 kg produced during
the same period in 2016. Production was largely
disrupted by ongoing mine development and
continuous redevelopment of shafts, as well as,
scheduled maintenance of both plant and
equipment at Zimplats. Trends in platinum output
and international prices of the mineral are shown
in Figure 14.


Figure 14: Trends in platinum output and
international
prices:
Jan-Sept
2016 & 2017

Source: Chamber of Mines of Zimbabwe

The recent firming up of prices that began end of
July 2017 is expected to boost revenue for the
producers. The performance of other key PGMs
was also in line with trends in platinum
production.
Palladium output at 2 367 kg in the third quarter
of 2017, was 0.4% more than the 2 358 kg
recorded in same period in 2016. Cumulatively,
palladium output amounted to 8 362 kg over the
period Jan-Sept 2017, which was 4.5% below the
8 760 kg produced in the comparable period in
2016. Figure 15 shows palladium production
trends and international prices.


Makomo
43%
HCCL
51%
Zambezi
Gas
6%

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
US$/ ounce
Kg

Average price

Figure 15: Trends in palladium output and
international prices: Jan-Sept
2016 & 2017

Source: Chamber of Mines of Zimbabwe

Nickel
Nickel output declined by 4.5%, from 4 099
tonnes produced in the third quarter of 2016 to 3
914 tonnes during the same period in 2017.
Output was weighed down by subdued PGMs
throughput. Cumulatively, nickel output at
amounted to 11 605 tonnes in the first 9 months of
2017, compared to the 11 826 tonnes produced
during the same period in 2016. Figure 16 shows
trends in nickel production and international
prices.


Figure 16: Trends in nickel production and
international prices

Source: Chamber of Mines of Zimbabwe

Diamond

During the third quarter of 2017, the country
produced 628 245 carats of diamond. This
represented a 74% increase from the 361 084
carats produced during the comparable period in
2016. Both producers ramped up production in the
third quarter of 2017, thereby driving up output,
as shown in Figure 17.
Figure 17: Quarterly diamond output (carats)

Source: Ministry of Mines, ZCDC, 2017

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
US$/ OUNCE
KG

Average International Prices

10000
12000

Jan Feb Mar Apr May Jun Jul Aug Sep
US$/ TONNE
TONNES

Average nickel Price (US$/tonne)

Q1

Q2

Q3

Q4

Q1

Q2

Q3

'000'carats
murowa
zcdc
Quarter Output

Cumulative diamond output for the period Jansept 2017 stood at 2.016 million carats. This
compares with the 1.446 carats produced in the
same period in 2016.
MANUFACTURING

The implementation of import management
measures,
collectively
under
Statutory
Instruments 64 of 2016 and 122 of 2017 resulted
in the resuscitation of a number of companies, and
the establishment of new plants by others in a
number of sectors.
The results from the recently launched CZI
Manufacturing Sector Survey 2017 indicated that
manufactured output volume grew by 5.5% over
2016. This, in large part, can be attributed to subsectors protected under the import management
program, such as foodstuffs, paper & packaging,
drinks & beverages and wood & furniture, which
took advantage of the protection to recapitalise
and expand capacity utilisation.
The survey suggests that while employment levels
declined by about 15% in 2017, output increased,
reflecting the increased efficiency from new
investments in technology. Table 9 shows subsector capacity utilisation and investments in the
manufacturing sector.


Table 9: Sub- sector capacity utilisation and
investments

Average
Capacity
Utilisation
(%)
Output
Growth
(%)
Investments
in
new
technology
(%)
Subsector

Chemical and
Petroleum
Products

Textile,
Clothing
and
Footwear

Drinks,
Tobacco
and
Beverages

Foodstuffs

Metal
and
Metal
Products

Non-Metallic
Mineral
Products
57.5
33.2

67.0
Paper,
Printing
and
Publishing

Plastics
and
Packaging

Transport,
Equipment

Wood
and
Furniture

Other
Manufacturing

Source: Conference of Zimbabwe Industries, 2017

The CZI Manufacturing Sector Survey estimates
the average weighted capacity utilisation in the
manufacturing sector at 45.1 % in 2017, from
47.4% recorded in 2016. Figure 18 shows the
manufacturing sector capacity utilisation.

Figure 18: Manufacturing Sector Capacity
Utilization (%)

Source: Conference of Zimbabwe Industries, 2017

The survey report also indicated that capacity
utilisation declined by 2.3 percentage points, from
47.4% in 2016 to 45.1% in 2017. The decline in
capacity utilization could be an indication of the
perennial challenges in the manufacturing sector
such as lack of competitiveness due to rising
production costs; difficulties in accessing foreign
currency; competition from smuggled cheap
imports;
and
antiquated
machinery
and
equipment, among others.
Oil expressing sub-sector
According to the Oil Expressers Association of
Zimbabwe, the oil expressers’ capacity utilisation
is projected to increase to 65% in 2017 from 60%
in 2016, following the implementation of the
import management program. The sub-sector has
a new entrant, Willowton, which took advantage
of the import management efforts and established
a plant in the country. Some of the sub-sector
statistics are shown in Table 10.

Table 10: Oil Expressers Statistics

forecast
Average
Capacity
Utilisation

35%

45%

60%

65%
Number
of
Players

Tonnage
Produced
annually (‘000
mt)

Installed
Annual
Industry
Capacity (mt)

Employment
Numbers

1,360
Source: Oil Expressers Association of Zimbabwe
Drinks, Tobacco and Beverages

In the beverages sub sector, there was increased
demand in the low value larger beer brand.
Categories such as sparkling beverages and
sorghum beer, however, registered declines
largely due to transactional challenges in the rural
areas, coupled with the switching to lager beer in
some markets.

ELECTRICITY

Electricity generation in the third quarter of 2017
stood at 2 052.2 GWh, surpassing output in the
two preceding quarters. The increase in quarterly
electricity generation was largely due to the
recovery at Hwange Thermal Power Station,
whose output increased significantly since the
first quarter. Generation at Kariba also increased
with the improved water levels. The output from
Independent Power Producers (IPPs) decreased


significantly following the closure of Dema
Emergency Power Plant in March 2017. The
Dema plant used to contribute over 50% of the
output of the IPPs. Table 11 shows the quarterly
electricity generation statistics from the major
power stations and IPPs in 2017.

Table 11: Electricity output (GWh) - 2017 Q3
Power Station
Q1
Q2
Q3
Kariba

955.2
1 008.5
Hwange
596.8
817.6
949.2
Bulawayo

2.5
25.8
Munyati

29.4
Harare
29.6
14.7
17.1
IPPs
96.4
39.6
22.3
Total
1 708.9
1 829.4
2 052.2
Source: ZPC, ZERA, 2017

Electricity output for the period January 2017 to
September 2017 was 5,590.62 GWh, up from the
5,426.59 generated during the same period in
2016. The increase was partially attributable to the
good
rainfall
season,
which
saw
Kariba
Hydroelectric Power Station increase production.
Figure

compares
quarterly
electricity
generation statistics from the Zimbabwe Power
Company installations and the IPPs in 2016 and
2017.


Figure 19: Electricity energy sent out (GWh):
2016 - 2017

Source: Zimbabwe Power Company, 2017

INFLATION DEVELOPMENTS

Annual headline inflation rate accelerated to
0.78% as at the end of the third quarter 2017, from
0.31% as at the end of the second quarter, driven
by both food and non-food inflation. The upsurge
in inflation, as reflected in increases in prices of
most commodities observed in September 2017,
was indicative of speculative pricing triggered by
increases in the parallel foreign market premiums.
This resulted in adverse inflationary expectations,
which in turn, caused multiple and speculative
pricing and rent seeking behavior. Figure 20
shows the annual inflation outturn since January
2016.


Q1
Q2
Q3
Q4


Electricity Generated
(GWh)

Figure 20: Annual Inflation Profile (%)

Source: Zimstat, 2017

Annual Food Inflation

The year-on-year food inflation surged to an
average of 2.1% during the third quarter of 2017
from an average of 1.7% in the second quarter.
The increase in food inflation was largely due to
increases in the meat; vegetables; and fish and sea
food subcategories. The increase in meat prices
can be attributed to the decline in poultry products
in the aftermath of the avian flu outbreak as well
as the decline in animal slaughters during the
quarter as farmers rebuild stock, thus reducing the
supply of meat.

In addition, the limited stock feed during the end
of winter season to beginning of raining season
result in the increase in the cost of meat as farmers
supplement natural feed. The increases were,
however, partially offset by the decline in the
prices of bread and cereals as prices responded to
an increase in the supply of grain from a bumper
harvest in 2017.


Annual Non-Food Inflation
Annual average non-food inflation declined to
-0.4% in the third quarter of 2017, from 0.03% in
the second quarter. The decrease was driven by
declines in clothing and footwear; housing, water,
electricity and other fuels; transport; and
education. Partially offsetting the declines were
increases in the furniture, household equipment
and maintenance and alcoholic beverages and
tobacco categories.

Regional Inflation Developments
Zimbabwe’s annual inflation, at 0.8% in
September 2017, remained the lowest in the
SADC region, as shown in the Table 12.

Table 12: Regional Annual Inflation Trends

2017 Mar
2017 Jun
2017 Sep
Zimbabwe
0.2
0.3
0.8
South Africa
6.1
5.1
5.1
Botswana
3.5
3.5
3.2
Mozambique
20.9
18.1
10.8
Tanzania
6.4
5.4
5.3
Zambia
6.7
6.8
6.6
Malawi
15.8
11.3
8.4
USA
2.4
1.6
2.2
Source: ZIMSTAT, 2017

Inflation Outlook
The upturn in the quarterly annualised inflation
during the third quarter of 2017 reflected a buildup of inflationary pressures in the economy in the
short to medium term.

Inflation in the outlook period will continue to be
influenced by international oil prices and the
US$/rand exchange rate. The recent increase in
international oil prices, if sustained, is expected to


Jan 16
Mar 16
May 16
Jul 16
Sep 16
Nov 16
Jan 17
Mar 17
May 17
Jul 17
Sep 17
Food Inflation
Non-Food Inflation
All Items

stoke inflationary pressures going forward. A
sustained weakening of the South African rand
could, however, dampen inflationary pressures in
Zimbabwe through trade and economic linkages
between the two countries.

The increase in foreign exchange rate premiums
on the parallel market, against the backdrop of
foreign currency shortages, may also spur
inflationary pressures.

4.
MONETARY DEVELOPMENTS,
INTEREST RATES AND FINANCIAL
MARKETS

Broad money supply increased by 14.92%, from
US$6 491.7 million in the second quarter of 2017
to $7 460.2 million in the third quarter of 2017.
The quarterly growth in money supply was largely
due to an expansion in transferrable deposits,
19.15%; and time deposits, 2.12%. Negotiable
securities, however, recorded a decline of 14.98%.

On an annual basis, money supply grew by
41.37%, from US$5 277.1 million in September
2016 to $7 460.2 million in September 2017.
Figure 21 shows annual broad money supply in
nominal terms as well as growth rates.


Figure 21: Annual Broad Money Supply
Growth Rates and Levels

Source: RBZ, 2017
Domestic Credit
Net domestic credit increased by 11.9%, from
US$8 773.5 million as at the end of the second
quarter of 2017 to US$9 819.5 million as the end
at of the third quarter of 2017. The growth was on
the back an 18.01% increase in net credit to
Government.

The increase in net credit to Government reflected
increased borrowing on the domestic market by
the government to finance the budget deficit.
Credit to the private sector, recorded a modest
growth of 3.57%. The low growth in credit to the
private sector, partly, reflected the cautionary
lending by banks.

On a sectoral basis, private sector credit was
distributed as follows: households, 23.7%;
agriculture,
17.6%;
services,
16.1%;

ANNUAL GROWTH %
US$ BILLION
Transferable Deposits
Time Deposits
NCDs
Currency in Circulation
Growth

manufacturing, 12.0%; financial organisations
and investments, 10.6%; distribution, 10.1%;
mining, 5.3%; transport and communications,
2.1%; construction, 2.0%; and other, 0.5%.
Figure 22: Sectoral Distribution of Credit
Source: RBZ, 2017

On a sectoral basis, private sector credit was
distributed as follows: households, 23.7%;
agriculture,
17.6%;
services,
16.1%;
manufacturing, 12.0%; financial organisations
and investments, 10.6%; distribution, 10.1%;
mining, 5.3%; transport and communications,
2.1%; construction, 2.0%; and other, 0.5%.
Interest Rates
During the quarter under review, nominal lending
rates quoted by most banks ranged between 6%
and 12%. Average maximum interest rates for 60day and 90-day deposit declined from 4.47% and
4.71% to 4.15% and 4.59%, respectively. The
decline reflected the lowering of cost of funds by
banks in line with low lending rates.
5. STOCK MARKET DEVELOPMENTS

During the quarter ended 30th September 2017, the
market remained bullish as investors flocked to
the stock market, owing to limited alternative
investment options. Trading activity on the
Zimbabwe Stock Exchange (ZSE) continued to be
skewed towards wealth preserving counters. As a
consequence, the ZSE gained US$6.17 billion
worth of capitalization, or 108.77% of the
previous quarter value to US$11.86 billion on 29th
September 2017. On a year-on-year basis, the
ZSE
registered
a
335.22%
growth
in
capitalization, from US$2.73 billion as at 30th
September 2016.

Figure 23: Market Capitalization

Source: Zimbabwe Stock Exchange, 2017

Industrial Index
As a result of improved trading activity on the
ZSE during the quarter under review, the
industrial index grew by 113.50%, from 195.97
points as at 30th June 2017 to 418.39 points as at
the end of the third quarter of 2017. On a year on
Households
23.7%
Agriculture,
17.6%
Manufacturing,
12.0%
Services,
16.1%
Distribution,
10.1%
Financial
Organisati
ons,
10.6%
Mining,
5.3%
Transport and
Communication,
2.1%
Construction,
2.0%
Other, 0.5%

30-Sep-16
26-Oct-16
21-...
17-Dec-16
12-Jan-17
7-Feb-17
5-Mar-17
31-...
26-Apr-17
22-...
17-Jun-17
13-Jul-17
8-Aug-17
3-Sep-17
29-Sep-17
US$ Millions

year basis, the industrial index gained 319.43
points, from 98.96 points in 2016 as shown in
Figure 24.

Figure 24: Zimbabwe Stock Exchange Indices

Source: Zimbabwe Stock Exchange, 2017

Mining Index
The resources index registered a 75.63% increase
to close at 122.57 points by end of the third quarter
of 2017. The increase in the mining index was
largely boosted by investor interest in RioZim and
Bindura Nickel Corporation (BNC). Other mining
houses, however, remained largely inactive
during the period under review. Improved
investor interest in RioZim Limited was
buttressed by the mining house’s bright growth
prospects. The group announced that its gold
production rebounded in the second half of the
year and is projecting to meet its year-end gold
output targets, augmented by output from the
acquisition of Dalny Mine.

On a year-on-year basis, the mining index grew by
360.62%, from 26.61 points as at end September
2016 to 122.57 as at end of September 2017.


Market Turnover
During the quarter under review, trading on the
local bourse was concentrated in blue-chip
counters. As a result, the turnover value increased
by 88.49% to US$127.8 million. Foreign investor
participation on the ZSE, however, continued to
decline. This was reflected by net outflows of
US$13.6 million and US$24.7 million in the
second and third quarters of 2017, respectively.

Figure 25: Market Turnover Value

Source: Zimbabwe Stock Exchange, 2017

6. PAYMENT,
CLEARING
AND
SETTLEMENT ACTIVITIES
The value of transactions processed through the
National Payment Systems (NPS) increased by
23%, from US$21.42 billion in the quarter ending

Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Mi i
Industrial
Industrial Index
Mining Index

30-Sep-16
26-Oct-16
21-Nov-16
17-Dec-16
12-Jan-17
07-Feb-17
05-Mar-17
31-Mar-17
26-Apr-17
22-May-17
17-Jun-17
13-Jul-17
08-Aug-17
03-Sep-17
29-Sep-17
US$ Millions

30th June 2017 to US$26.26 billion in the quarter
ending 30th September 2017. NPS transaction
volumes increased by 44% to 287.5 million in the
third quarter of 2017, from 199.9 million recorded
in the second quarter.

Real Time Gross Settlement (RTGS), Points of
Sale, Internet and Mobile payment streams
recorded increases in both values and volumes
during the quarter under review. Cash, cheque and
Automated Teller Machines, however, registered
decreases, compared to quarter ending 30th June
2017.

Table 13 provides the statistical information on
various payment streams for the second quarter
ending 30th September 2017.


Table 13: Consolidated Transactional Activities
TRANSACTIONAL ACTIVITIES
Payment
Stream
Second
quarter
ending

June 2017
Third quarter
ending

September

Chang
e from
last
quarter
Proport
ion

VALUES IN US$ Million

RTGS

CASH

-19%
2.8%
CHEQUE

-8%
0.1%
POS

ATMS

-41%
0.3%
MOBILE

INTERNET

TOTAL


VOLUMES

RTGS

CASH

CHEQUE

POS

ATMs

MOBILE

INTERNET

TOTAL

Source: RBZ, 2017

Large Value Payments

Zimbabwe Electronic Transfer and Settlement
System

The value of transactions processed through the
RTGS increased by 11% to US$16.2 billion
during the quarter ending 30th September 2017,

from the US$14.5 billion recorded in the quarter
ending 30th June 2017. RTGS transaction volumes
registered an increase of 18% to 1 682 991 in the
quarter ending 30th September 2017, from 1 420
517 during the quarter ending 30th June 2017, as
shown in Figure 26.

Figure 26 : RTGS Values and Volumes


Source: RBZ, 2017

SWIFT Foreign Currency Transactions

SWIFT foreign currency payments decreased by
41% to US$0.83 billion for the quarter ending 30th
September 2017, from US$1.4 billion in the
quarter ending 30th June 2017. During the same
period,
SWIFT
foreign
currency
receipts
decreased by 15.7% to US$0.87 billion from
US$1.04 billion as shown in Figure 21. The
quarter under review posted net foreign currency
inflows of US$39.95 million. This compares with
the net outflow position of US$365.64 million
registered during the second quarter of 2017.
Figure 27 shows trends in SWIFT foreign
currency transactions.

Figure 27: SWIFT Cross Border Transactions

Source: RBZ, 2017


Over the Counter Cash Withdrawals

The value of cash withdrawals decreased by 19%,
from US$0.92 billion in the quarter ending 30th
June 2017 to US$0.74 billion recorded during the
quarter ending 30th September 2017. The
corresponding volumes decreased by 4%, from
6.79 million in the second quarter to 6.54 million
in the third quarter, as shown in Figure 28.


2016 Q1
2016 Q2
2016 Q3
2016 Q4
2017 Q1
2017 Q2
2017 Q3
RTGS Values in Billions
RTGS Volumes in Thousamds
Values
Volumes


Dec-

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

Sep-

Volumes in Thousands
Value in US$B
Value of Receipts
Value of Payments
Volumes of Payments
Volumes of Receipts

Figure
28:
Over
the
Counter
Cash
Withdrawals

Source: RBZ, 2017

Retail Payments

Figures 29 and 30 show the trends in the values
and volumes of retail transactions from quarter
ending 30 June 2016 to quarter ending 30
September 2017.


Figure 29: Values of Retail Transactions


Source: RBZ, 2017


Figure 30 : Volumes of Retail Transactions

Source: RBZ, 2017

Q2

Q3

Q4

Q1

Q2

Q3


US$ BILLIONS
MILLIONS
Volumes
Values


Qtr
endg
Jun

Qtr
endg
Sept

Qtr
endg
Dec

Qtr
endg
Mar

Qtr
endg
Jun

Qtr
endg
Sept

US$ Millions
CHEQUE
POS
ATMS
MOBILE
INTERNET
CASH


Qtr
endg
Jun

Qtr
endg
Sept

Qtr
endg
Dec

Qtr
endg
Mar

Qtr
endg
Jun

Qtr
endg
Sept

Mobile Volumes in Millions
Other Retai Volumes in Millions
CHEQUE
POS
ATMs
INTERNET
MOBILE
CASH

Collateral2

The value of collateral increased to US$50.40
million in the quarter ending September 2017,
from US$43.10 million recorded in the quarter
ending June 2017, as shown in Figure 31.


Figure 31: Total Collateral


Source: RBZ, 2017

Access Points and Devices

Mobile banking agents increased to 44,793 in the
third quarter of 2017, from 42,102 reported in the
second quarter.

The POS population increased to 50,418 in the
third quarter ending 30 September 2017 from
44,805 which was recorded in the second quarter
which ended 30 June 2017. In line with the
promotion of electronic means of payment which
is being promoted by the Reserve Bank of

2The collateral figure comprises of cheque and Zimswitch
card payment stream amounts.
Zimbabwe, ATM population increased to 563
during the quarter ending 30 September 2017
from 562 reported in the second quarter ended 30
June 2017.

There were 3.82 million active mobile financial
services subscribers registered in the period under
review from 3.35 registered subscribers recorded
in the previous quarter. Table 14 depicts payment
access points and devices.

Table 14: Payment Systems Access Points and
Devices
PAYMENT SYSTEMS ACCESS POINTS


Q1 2017
Q2 2017
Q3 2017
Mobile
Banking
Agents
40,540
42,102
44,793
ATMs

POS
40,011
44,805
50,418
PAYMENT SYSTEMS ACCESS DEVICES


Debit Cards
3,359,455
3,780,389
4,186,957
Credit Cards
16,945
17,510
17,806
Prepaid Cards
46,593
52,384
62,517
Active Mobile
Banking
Subscribers
3,214,001
3,353,916
3,821,865
Internet
Banking
Subscribers
177,920
205,104
250,681
Source: RBZ, 2017

Q1

Q2

Q3

Q4

Q1

Q2

Q3
US$ MILLIONS

FISCAL DEVELOPMENTS
Government revenue

Cumulative fiscal revenue inflows for the period
January to September 2017 stood at US$2.812
billion, about 2.7% above the target of US$2.737
billion, largely driven by tax revenue collections
which surpassed the target by 5.1%. Non-tax
revenue was, however, below target by 24.1%,
weighing down overall revenue inflows. Figure
32 shows the performance of fiscal revenue heads.
Figure 32: Revenue head performance: actual
vs target
Source: Ministry of Finance & Economic
Development, 2017
Cumulative revenue also surpassed the US$2.6
billion collected during the comparable period in
2016 by 8.2%. While revenue inflows exceeded
target during the period under review, they
remained subdued, compared to the requirements
of Government. Revenue performance continued
to be adversely affected by the increasingly
challenging business operating environment.
The composition of tax revenue for the 9 month
period, January to September 2017 is shown in
Figure 33.

Figure 33: Composition of Tax Revenue: JanSept 2017


Source: Ministry of Finance & Economic
Development, 2017

EXPENDITURE PERFORMANCE

Cumulative Government expenditure over the
first nine months of 2017 amounted to US$3.886
billion, 20.6% above the target of US$3.085
billion. The expenditure over-run was attributable
to both current and capital expenditures that
surpassed
targets
by
14.5%
and
46.3%,
respectively, as shown in Figure 34.


Tax on
Income
and
Profits
Customs
duties
Excise
duties
Value
Added
Tax
(VAT)
Other
indirect
taxes
Non-tax
Revenue

2017 Target

Tax on
Income
and Profits
38%
Customs
duties
9%
Excise
duties
19%
Value
Added Tax
(VAT)
30%
Other
indirect
taxes
4%

Figure 34: Expenditure head performance:
2017 vs 2016


Source:
Ministry
of
Finance
&
Economic
Development, 2017

Current expenditures remained the major cost to
Government, accounting for 80.7%, while capital
and net lending expenditure components were
19.3% of total expenditures during the period
under review. The proportions of expenditure by
item are shown in Figure 35.


Figure
35:
Composition
of
Government
expenditure: Jan-Sep 2017

Source: Ministry of Finance & Economic
Development, 2017
Fiscal Balance

The
cumulative
revenue
and
expenditure
developments for the nine month period from
January to September 2017 resulted in a fiscal
deficit of $1.074 billion, a clearly unsustainable
fiscal position, given the limited fiscal space.
There is need for the government to grow the tax
base, while at the same time containing current
expenditures, to improve the fiscal position.


RESERVE BANK OF ZIMBABWE
DECEMBER 2017


Employment
Costs
Operations &
Maintenance
Interest
Capital
Expenditures
& Net
Lending

2017 Target

Employment
Costs
65%
Operations &
Maintenance
12%
Interest
4%
Capital
Expenditures
& Net
Lending
19%
STATISTICAL TABLES

1. Depository Corporation Survey S1
2. Central Bank Survey S2
3. Other Depository Corporation Survey S3

4. Liabilities and Assets of the Central Bank
4.1.Reserve Bank: Assets


S4

4.2.Reserve Bank: liabilities S5


5. Other Depository Corporation
5.1.Other Depository Asset S6
5.2.Other Depository Liabilities S7

6. Commercial Banks
6.1.Commercial Banks: Assets

S8
6.2.Commercial Banks: Liabilities
S9
7. Building Societies


7.1.Building Societies: Assets

S10

7.2.Building Societies: Liabilities S11


8. Sectoral Analysis of Commercial Banks
8.1.Sectoral Analysis of Commercial Banks’ Loans and Advances S12
8.2.Sectoral Analysis of Commercial Bank’s Deposits

S13


9. National Payment Systems


9.1.Values of Transactions


S14
9.2.Volumes of Transactions


S14

10. Interest Rates, Security Yields and Prices
10.1. Lending Rates


S15
10.2. Deposit Rates S15


11. Stock Exchange Indices


S16

12. Inflation


12.1. Monthly Inflation


S17
12.2. Quarterly Inflation


S18
12.3. Annual Inflation


S19

13. Balance of Payments
13.1. Cross Border Payments


S20
13.2. Cross Border Receipts


S21

14. External Sector
14.1. External Debt Outstanding By Debtor


S22
14.2. External Debt Outstanding by Source


S23

15. National Accounts
15.1. Real Gross Domestic and National Product per Capita at Market Prices
S24
15.2. Gross Domestic Product at Factor Cost by Industry


S25
15.3. Expenditure on Gross Domestic Product


S26
15.4. Mineral Production


S27
15.5. Electricity Produced and Distributed S28
15.6. Volume of Manufacturing Index


S29


Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Net Foreign Assets

Central Bank(net)

Foreign Assets

Foreign Liabilities

Other Depository Corporations(net)

Foreign Assets

Foreign Liabilities

Net Domestic Assets (NDA)

Domestic Claims

Claims on Central Government(net)

Claims on Central Government

Central Bank

ODCs

Less Liabilities to Central Government

Claims on Other Sectors

Other Financial Corporations

State and Local Government

Public Non Financial Corporations

Private Sector

Central Bank

ODCs

Other Items(Net)

Shares and Other Equity

Liabilities to Other Financial Corporations

Restricted Deposits

Other Items(net)

Broad Money-M3

Securities Other than Shares Included in Broad Mon

Broad Money-M2

Other Deposits

Narrow Money-M1

Transferable Deposits

Currency Outside Depository Corporations

Source:Reserve Bank of Zimbabwe,2017
Note:
(i) Depository corporations survey - formerly Monetary Survey.
(ii) Broad money redefined using IMF's Monetary and Financial Statistics Manual of 2000. Major changes include exclusion of Government deposits held by banks from broad money.
(iii) Transferable deposits made up of demand and savings deposits.
(iv) NCDs are also referred to as securities included in broad money.
(v) All classes of time deposits, short and long term are classified as time deposits, which are also termed other deposits.
(vi) Credit to the private sector now excludes claims on other financial corporations, as well as claims on state and local government (local authorities)
(vii) Depository corporations made up of the Central Bank and other depository corporations
(viii) Other depository corporations (ODCs) - Commercial banks, merchant banks, building societies and POSB.
TABLE 1: DEPOSITORY CORPORATIONS SURVEY (US$ '000)


S2


Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Net Foreign Assets

Claims on Non Residents

Official Reserves Assets

Other Foreign Assets

Less Liabilities to Non Residents

Short Term Liabilities

Other Foreign Liabilities

Net Domestic Assets (NDA)

Domestic Claims

Net Claims on Central Government

Claims on Central Government

Of which: Securities Other than Shares

Less Liabilities to Central Government

Of which: Deposits

Claims on Other Sectors

Other Financial Corporations

State and Local Government

Public Non Financial Corporations

Private Sector

Claims on Other Depository Corporations

Other Liabilities to ODCs

Other Items(Net)

Monetary Base

Bond Coins

Bond Notes

Liabilities to ODCs

Reserve Deposits

Other

Private Deposits

Source:Reserve Bank of Zimbabwe,2017
TABLE 2: CENTRAL BANK SURVEY (US$'000)


S3


Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Net Foreign Assets

Claims on Non Residents

Of Which: Foreign Currency

Deposits

Other

Less Liabilities to Non Residents

Of Which: Deposits

Loans

Other

Net Domestic Assets (NDA)
5,245,432.00

5,321,500.90

5,442,974.41

5,549,018.98

5,580,169.12

5,639,870.63

5,709,300.08

5,875,774.29

5,952,966.10

6,280,977.27

6,298,478.80

6,804,652.82

7,083,536.41

Domestic Claims
5,022,442.51

5,110,022.06

5,157,302.61

5,249,484.24

5,193,549.03

5,210,748.62

5,374,818.07

5,496,061.61

5,599,314.81

5,744,480.55

5,664,876.26

5,897,249.35

6,106,204.09

Net Claims on Central Government
1,446,944.29

1,503,220.41

1,472,146.07

1,528,867.51

1,617,356.78

1,673,670.22

1,722,915.15

1,893,632.91

1,910,530.23

1,988,366.03

1,949,894.23

2,053,882.03

2,235,169.19

Claims on Central Government
1,490,684.3763

1,546,271.8214

1,518,299.1187

1,571,032.9250

1,670,420.5050

1,728,929.8577

1,809,816.2513

1,969,866.9249

1,985,634.2076

2,062,080.8211

2,027,953.6484

2,142,212.9900

2,290,365.4156

Securities
1,463,404.5297

1,517,535.6764

1,500,671.4257

1,553,239.1020

1,654,534.6290

1,713,961.3077

1,794,113.0553

1,954,045.2049

1,968,887.3446

2,014,158.1741

1,982,771.1424

2,100,894.1800

2,248,874.2676

Loans
27,279.8466

28,736.1450

17,627.6930

17,793.8230

15,885.8760

14,968.5500

15,703.1960

15,821.7200

16,746.8630

47,922.6470

45,182.5060

41,318.8200

41,491.1480

Other
(0.0000)

-

(0.0000)

0.0000

(0.0000)

0.0000

-

(0.00)

(0.00)

(0.00)

-

-

-

Less Liabilities to Central Government
(43,740.0913)

(43,051.4118)

(46,153.0502)

(42,165.4109)

(53,063.7244)

(55,259.6416)

(86,901.1009)

(76,234.0149)

(75,103.9806)

(73,714.7955)

(78,059.4171)

(88,330.9700)

(55,196.2259)

Claims on Other Sectors
3,575,498.2216

3,606,801.6478

3,685,156.5434

3,720,616.7211

3,576,192.2507

3,537,078.4083

3,651,902.92

3,602,428.70

3,688,784.58

3,756,114.52

3,714,982.03

3,843,367.33

3,871,034.90

Other Financial Corporations
117,440.18

106,745.29

109,892.67

102,641.44

100,223.50

60,600.81

61,686.40

63,543.47

77,258.00

132,079.86

80,587.02

83,743.90

84,929.32

State and Local Government
43,554.41

41,728.47

37,784.82

34,237.41

35,909.11

35,006.53

34,312.18

34,732.93

36,595.52

35,573.02

34,059.17

34,223.63

31,707.35

Public Non Financial Corporations
93,825.28

103,499.64

101,612.03

86,631.35

84,675.48

84,417.84

86,380.62

90,267.74

88,656.44

98,878.45

142,891.35

171,759.70

142,254.70

Private Sector
3,320,678.35

3,354,828.25

3,435,867.03

3,497,106.53

3,355,384.15

3,357,053.23

3,469,523.72

3,413,884.55

3,486,274.63

3,489,583.19

3,457,444.48

3,553,640.10

3,612,143.52

Claims on the Central Bank
1,209,909.110

1,156,606.119

1,323,120.314

1,435,556.219

1,475,197.651

1,507,778.322

1,498,477.568

1,505,940.672

1,505,814.461

1,682,269.779

1,814,568.562

2,074,164.010

2,122,438.965

Bond Notes and Coins
1,627.106

1,420.818

4,565.027

16,563.071

20,206.055

19,301.209

12,559.660

10,691.409

13,438.609

7,361.926

7,148.374

12,310.360

11,999.682

Reserves
1,208,282.003

1,155,185.301

1,318,555.287

1,418,993.147

1,454,991.597

1,488,477.113

1,485,917.908

1,495,249.263

1,492,375.852

1,674,907.853

1,807,420.188

2,061,853.650

2,110,439.283

Liabilities to the Central Bank


1.79
3.386
Other Items(Net)
986,918.90

945,127.17

1,037,448.30

1,134,271.35

1,088,577.32

1,078,654.52

1,162,242.90

1,126,224.85

1,152,162.40

1,145,772.36

1,180,966.02

1,166,758.76

1,145,103.26

Shares and Other Equity
1,194,352.25

1,211,644.10

1,228,902.77

1,271,826.05

1,272,987.21

1,279,285.69

1,301,867.36

1,295,023.50

1,310,286.87

1,325,276.01

1,330,874.62

1,342,135.53

1,356,314.17

Liabilities to other financial corporations
36,195.23

28,299.00

28,777.63

48,770.44

41,105.95

43,353.63

41,885.62

41,887.59

42,243.24

46,601.91

35,579.93

22,829.02

32,113.21

Other Items(Net)
(243,628.59)

(294,815.93)

(220,232.10)

(186,325.14)

(225,515.85)

(243,984.80)

(181,510.08)

(210,686.24)

(200,367.71)

(226,105.56)

(185,488.52)

(198,205.79)

(243,324.12)

Deposits and Securities Included in Broad Mo
5,263,571.88

5,302,500.30

5,397,590.93

5,567,120.14

5,579,371.63

5,654,297.27

5,734,703.72

5,960,513.96

6,009,210.65

6,278,455.63

6,345,429.42

6,858,037.73

7,177,759.33

Deposits Included in Broad Money
5,189,453.59

5,229,143.63

5,353,728.76

5,504,225.78

5,528,809.61

5,594,968.03

5,674,542.57

5,897,221.76

5,947,817.72

6,212,788.17

6,279,146.84

6,786,983.35

7,121,929.07

Transferable Deposits
3,654,543.14

3,720,200.45

3,886,146.76

4,032,568.59

3,983,863.96

4,042,323.47

4,144,685.59

4,366,516.18

4,389,399.64

4,673,922.65

4,679,042.08

5,182,081.91

5,550,494.39

Other Deposits
1,534,910.45

1,508,943.19

1,467,582.00

1,471,657.19

1,544,945.66

1,552,644.56

1,529,856.98

1,530,705.58

1,558,418.08

1,538,865.52

1,600,104.76

1,604,901.44

1,571,434.68

74,118.29

73,356.67

43,862.17

62,894.35

50,562.02

59,329.24

60,161.15

63,292.20

61,392.93

65,667.46

66,282.58

71,054.38

55,830.26

Source:Reserve Bank of Zimbabwe,2017
TABLE 3: OTHER DEPOSITORY CORPORATIONS SURVEY (US '000)


S4


Capital
and
Foreign
general
End of
Bond Notes in
Circulation
Bond Coins in Circulation
Bond Notes and
Bankers Deposits
Other Deposits
Govt. Deposits
Total Deposits
Liabilities
reserve
Other Liabilities
TOTAL
coins* issued

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, 2017
*Bond coins first issued in December 2014
* Bond Notes issued on 28 November 2016
US$ Thousands
Deposits
TABLE 4.1: RESERVE BANK - LIABILITIES


S5


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

Jul

Aug

Sep

Source: Reserve Bank of Zimbabwe, 2017
TABLE 4.2: RESERVE BANK - ASSETS
Foreign Assets
Loans and advances
Investments


S6


Foreign
TOTAL
End of
Notes
Bond
&
Balances
Balances with
Balances
Other Claims
Notes &
Coin
with
Other Depository
with
on
Government

Local Governemt
Public Enterprises
Other

Government
Local
Public
Other Institutional Units

Other cliams
Contigent Assets Other Assets
Non Financial
Coins
RBZ
Corporations
Foreign Banks
Non-residents
Securities
securities
Government
Enterprises
Assets

Jan
1.22


Feb
1.44


Mar
1.53


Apr
1.55


May
1.53


Jun
1.61


Jul
1.62


Aug
1.58


Sep
1.63


Oct
1.42


Nov
4.57


Dec
16.56


Jan
20.21


Feb
19.30


Mar
12.56


Apr
10.69


May
13.44


Jun
7.36


Jul
7.15


Aug
12.31


Sep
12.00


Source:Reserve Bank of Zimbabwe,2017
Notes
1.Government securities includes treasuary bills and bonds
2.Includes bankers acceptances, discounted bills and negotiable certificates of deposits.
3.Includes households, other financial corporations.
TABLE 5.1: OTHER DEPOSITORY CORPORATIONS -ASSETS
US$ millions
Debt Securities
Loans and Advances


S7


Debt Securities
Foreign Liabilities
Capital
Contigent
Other
TOTAL
and
Liablities
Liablities
End of
Demand
Savings
Time Deposits
Total Deposits
Other Depository
Government
Total
RBZ
Other Depository
Other Finacial
Reserves
from the public
Corporations
Corporations
Corporations

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,2017
TABLE 5.2 : OTHER DEPOSITORY CORPORATIONS - LIABILITIES
US$ millions
Deposits
Amounts Owing to


S8


TOTAL
End of
Foreign
Bond
Notes
Balances
Balances with
Balances
Other Claims
Local
Public
Other
Contigent
Non Financial
Notes &
&
with
Other Depository
with
on
Government1
Local Governemt
Public Enterprises
Other2
Government
Government
Enterprises
Institutional Units3
Other claims
Assets
Other Assets
Assets
Coins
Coin
RBZ
Corporations
Foreign Banks
Non-residents
Securities
securities

Jan
1.05


Feb
1.21


Mar
1.31


Apr
1.35


May
1.38


Jun
1.42


Jul
1.45


Aug
1.36


Sep
1.40


Oct
1.27


Nov
4.24


Dec
14.07


Jan
17.72


Feb
16.29


Mar
10.74


Apr
9.82


May
12.36


Jun
7.01


Jul
6.71


Aug
11.80


Sep
11.43


Source:Reserve Bank of Zimbabwe,2017
Notes
1.Government securities include treasuary bills and bonds
2.Includes bankers acceptances, discounted bills and negotiable certificates of deposits.
3.Includes households, other financial corporations,
Debt Securities
Loans and Advances
TABLE 6.1: COMMERCIAL BANKS -ASSETS
US$ millions


S9


US$ millions
End of
Demand
Savings
Time Deposits
Total Deposits
Other Depository
Government
Total
Debt Securities
Foreign Liabilities
RBZ
Other Depository Other Finacial
Capital
Contigent
Other
from the public
Corporations
Corporations
Corporations
and
Liablities
Liablities
TOTAL
Reserves

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,2017
TABLE 6.2 : COMMERCIAL BANKS - LIABILITIES
Deposits
Amounts Owing to


S10


Foreign
Other Assets
Non Financial
TOTAL
End of
Notes
Assets
Bond
&
Balances
Balances with
Balances
Other Claims
Notes &
Coin
with
Other Depository
with
on
Government1
Local Governemt
Public Enterprises
Other2
Mortgages
Government
Other
Coins
RBZ
Corporations
Foreign Banks
Non-residents
Securities
securities

Jan
0.13


Feb
0.20


Mar
0.19


Apr
0.19


May
0.14


Jun
0.18


Jul
0.16


Aug
0.20


Sep
0.21


Oct
0.12


Nov
0.14


Dec
1.72


Jan
2.35


Feb
1.19


Mar
1.65


Apr
0.74


May
0.92


Jun
0.34


Jul
0.39


Aug
0.44


Sep
0.56


Source:Reserve Bank of Zimbabwe,2017
Notes
1.Government securities include treasuary bills and bonds
2.Includes bankers acceptances, discounted bills and negotiable certificates of deposits.
3.Includes households, other financial corporations,
TABLE 7.1: BUILDING SOCIETIES -ASSETS
US$ millions
Debt Securities
Loans and Advances


S11


Debt Securities
Foreign Liabilities
Capital
Other
TOTAL
and
Liablities
End of
Savings
Time Deposits
Total Deposits
Other Depository
Government
Total
RBZ
Other Depository Other Finacial
Reserves
from the public
Corporations
Corporations
Corporations

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,2017
Amounts Owing to
TABLE 7.2: BUILDING SOCIETIES -LIABILITIES
US$ millions


S12


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 of

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,2017
TABLE 8.1: Sectoral Analysis of Commerical Banks' Loans and Advances
US$ Thousands


S13


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

INVESTMENT
ORGANISATIONS

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,2017
TABLE 8.2: Sectoral Analysis of Commercial Banks' Deposits
US$ Thousands


S14


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

Jan
3,385.87 11.10 137.39 331.52 388.89 167.68
Jan
132.26 24.62 1,328.93 1,104.45 19,956.07 49.89
Feb
3,448.15 11.86 138.75 312.12 389.26 167.93
Feb
148.42 30.26 1,289.46 1,067.13 19,793.73 54.57
Mar
3,460.22 11.26 142.08 288.82 417.13 255.93
Mar
152.47 29.65 1,455.70 962.91 21,731.49 61.86
Apr
3,564.32 9.65 180.12 247.60 427.29 168.31
Apr
161.73 24.97 1,962.64 841.34 21,086.57 59.85
May
3,869.19 10.83 214.79 203.25 479.93 217.91
May
199.26 29.11 2,779.90 675.85 23,292.99 83.15
Jun
3,870.19 10.27 203.90 131.40 465.10 174.10
Jun
268.19 33.50 3,203.80 741.94 23,321.17 87.96
Jul
3,911.78 9.19 240.04 166.30 491.22 218.04
Jul
242.37 31.08 3,946.34 1,052.84 24,538.83 102.75
Aug
3,928.66 7.92 238.03 165.92 535.39 230.62
Aug
253.94 27.77 4,038.12 1,156.38 26,009.65 109.49
Sep
4,382.93 10.48 237.25 167.66 533.91 215.92
Sep
288.52 32.49 4,421.91 1,188.53 27,299.97 99.96
Oct
4,127.64 7.99 322.79 112.49 524.46 216.05
Oct
296.00 29.19 6,247.39 1,106.36 29,801.73 117.90
Nov
4,624.70 6.90 363.40 84.50 537.20 229.90
Nov
353.00 30.60 8,691.20
1086,9
28,542.10 128.80
Dec
4,882.61 5.62 479.86 71.92 626.08 265.12
Dec
405.38 24.23 13,042.06 1,347.98 33,211.84 155.86
Annual
Total

Annual
Total
2,901.53 347.45 52,407.46 11,245.68 298,586.15 1,112.04

Jan
4,052.71 7.48
368.71
70.42 495.55 318.91
Jan
350.02 26.67
12,756.29
1,173.56 27,550.09 190.96
Feb
4,246.60 7.00 327.30 58.40 472.30 324.10
Feb
326.30 27.80 8,952.00 953.50 26,820.10 207.00
Mar
4,629.80 7.40
392.20
58.80 671.60 399.70
Mar
414.20 31.00
11,124.00
944.30 35,604.10 244.10
Apr
4,178.80 4.80
466.90
39.30 792.50 337.60
Apr
363.70 21.60
13,595.50
652.90 40,089.00 231.00
May
4,974.00 6.50 557.80 44.70 939.90 618.70
May
531.80 27.80 16,623.40 820.60 47,019.10 323.30
Jun
5,346.45 6.28
558.85
34.63 1,095.55 500.28
Jun
524.99 29.31
17,466.16
696.87 53,738.12 342.14
Jul
4,805.10 5.70
588.40
29.40 1,601.40 586.40
Jul
521.80 30.00
20,013.70
636.10 61,162.40 382.60
Aug
5,325.10 5.18
590.10
24.70 1,776.40 583.30
Aug
541.50 26.60
20,303.00
595.60 70,771.60 419.10
Sep
6,031.37 5.19
651.11
16.11 2,159.26 731.93
Sep
620.00 27.17
20,731.00
478.00 83,303.00 432.00
Source:Reserve Bank of Zimbabwe,2017
TABLE 9.1 : ZETSS AND RETAIL PAYMENTS TRANSACTIONAL ACTIVITY
Values of Transactions (US$ in millions)
TABLE 9.2 : ZETSS AND RETAIL PAYMENTS TRANSACTIONAL ACTIVITY
Volumes of Transactions (in thousands)


S15


End of
Nominal Lending
Rates2
Individuals
Corporate
Savings
3 Months2

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
Oct
4.00-18.00
10.7
6.93
Oct
0.50-6.00
1.00-17.00
Nov
4.00-18.00
10.69
6.99
Nov
0.50-6.00
1.00-17.00
Dec
4.00-18.00
10.59
6.87
Dec
0.50-6.00
1.00-17.00

Jan
4.00-18.00
10.61
6.68
Jan
0.50-6.00
1.00-17.00
Feb
4.00-18.00
10.06
6.52
Feb
0.50-6.00
1.00-17.00
Mar
4.00-18.00
9.12
7.02
Mar
0.50-6.00
1.00-17.00
Apr
4.00-18.00
9.25
7.02
Apr
0.50-6.00
1.00-17.00
May
4.00-18.00
9.17
7.03
May
0.50-6.00
1.00-9.50**
Jun
4.00-18.00
9.01
7.05
Jun
0.50-6.00
1.00-12.00
Jul
4.00-18.00
8.94
7.05
Jul
0.50-6.00
1.00-12.00
Aug
4.00-18.00
8.88
6.95
Aug
0.50-6.00
1.00-12.00
Sep
4.45-18.00
8.86
7.01
Sep
0.50-12.00
0.75-8.00
Source:Reserve Bank of Zimbabwe,2017
Notes
3. Lending rates exclude rates on staff loans.
TABLE 10.2 : 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 10.1: 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 Rates 3
Commercial Banks
Commercial Banks
End of


S16


End of
Industrial
Mining
Volume of Shares
Market Turnover
Market Capitalisation

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source: Zimbabwe Stock Exchange (ZSE),2017
Indices
US$ Millions
TABLE 11: ZIMBABWE STOCK MARKET STATISTICS


S17


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, 2017
NON-FOOD INFLATION
TABLE 12.1 : MONTHLY INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX
( DECEMBER 2012 = 100)


S18


FOOD
INFLATION
ALL
ALCOHOLIC
BEVERAGES
CLOTHING
HSING, WATER,
FURNITURE
HEALTH
TRANSPORT
COMMUNICATION
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, 2017
TABLE 12.2 : QUARTERLY INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX
( DECEMBER 2012 = 100)
NON-FOOD INFLATION


S19


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, 2017
TABLE 12.3 : ANNUAL INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX
( DECEMBER 2012 = 100)
NON-FOOD INFLATION


S20


End of
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Merchandise Imports (excl. energy)
226.9

218.8

236.7

180.5

207.4

190.8

213.6

225.3

298.7

259.7

198.6

182.3

202.8

- Consumption Goods
121.5

110.9

125.4

92.7

94.2

78.5

99.1

98.9

128.7

84.7

65.3

65.8

80.7

- Capital Goods
48.6

46.6

57.6

33.9

55.3

54.3

55.5

52.4

73.1

80.7

64.6

61.5

63.6

- Intermediate Goods
56.8

61.3

53.8

53.8

57.9

58.0

59.0

74.0

96.8

94.3

68.8

55.0

58.5

Energy (Fuel & Electricity)
56.7

64.3

90.9

65.1

63.8

58.4

51.4

52.2

75.0

77.8

55.7

72.5

61.6

Service Payments
76.5

74.9

81.2

99.8

74.7

66.6

81.9

69.4

78.2

58.4

58.3

63.6

63.0

- Technical, Professional & consult
37.8

33.1

36.7

40.8

29.0

17.2

36.5

24.8

36.5

20.7

26.1

21.8

17.7

- Software
3.0

3.4

3.4

2.6

4.6

3.9

4.9

4.4

6.3

5.6

2.8

2.1

2.1

- Other (tourism, edu, freight etc)
35.6

38.4

41.1

56.4

41.0

45.4

40.5

40.2

35.4

32.1

29.4

39.6

43.2

Income Payments (Profits, Dividends
7.9

15.5

10.6

8.2

14.0

6.8

12.0

12.2

17.8

19.4

23.5

7.0

10.9

Capital Remittances (outward)
50.1

58.8

26.4

23.9

24.0

33.2

41.7

44.1

64.0

34.8

21.8

55.1

21.8

- External Loan Repayments
43.1

52.2

20.8

23.3

22.8

32.4

29.9

41.4

61.0

33.3

18.6

54.3

18.8

- Disinvestments
6.2

6.6

5.2

0.6

1.0

0.2

11.7

2.7

2.9

1.3

3.1

0.7

0.6

- Cross Border Investment
0.7

0.1

0.5

0.1

0.1

0.6

0.1

0.0

0.1

0.2

0.0

0.2

2.4

Other Payments
2.2

0.3

0.2

0.1

0.3

0.1

0.3

2.0

0.2

0.3

0.0

0.1

0.1

TOTAL
420.3

432.7

446.1

377.6

384.1

355.9

400.9

405.1

533.9

450.3

358.0

380.6

360.2

Source: Reserve Bank of Zimbabwe, 2017
Table 13.1: Monthly Cross Border Payments (US$ Millions)


S21


Agriculture
Horticulture Manufacturing
Mining
Tobacco
Tourism
Transport
Postal &
Other Services Total
End of
Telecom
Jan-17

Feb-17

Mar-17

Apr-17

May-17

Jun-17

Jul-17

Aug-17

Sep-17

Source: Reserve Bank of Zimbabwe, 2017
Table 13.2: Monthly Cross Border Receipts (US$Millions)


S22


(US$ millions)
End Period

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


Short-Term External Debt

1,198
1,382
1,289


Supplier's Credits

Reserve Bank

Private

1,807
1,671
1,731
Total External Debt

Source: Ministry of Finance & Economic Development, 2017; & Reserve Bank of Zimbabwe, 2017
TABLE 14.1: ZIMBABWE: EXTERNAL DEBT OUTSTANDING BY DEBTOR (INCLUDING ALL ARREARS)


S23


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


Short-Term External Debt

1,286


Public and Publicly Guaranteed Debt

Reserve Bank


Private

1,807
1,671
1,731
Total External Debt

Gross Domestic Product


External Debt / GDP

Source: Ministry of Finance & Economic Development, 2017 ; Reserve Bank of Zimbabwe, 2017
TABLE 14.2: External Debt Outstanding by Source
(US$ millions)


S24


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 :ZIMSTATS, 2017
Current Prices
Constant Prices
Constant Prices
Per Capita
TABLE 15.1: REAL GROSS DOMESTIC AND NATIONAL PRODUCT PER CAPITA AT MARKET PRICES


S25


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


Source :ZIMSTATS, 2017
2 . Includes domestic services and allowance for imputed banking service charges .
TABLE 15.2 : GROSS DOMESTIC PRODUCT AT FACTOR COST BY INDUSTRY
US$ Millions
(at current prices )


S26


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 :ZIMSTATS, 2017
(at current prices)
US$ Millions
TABLE 15.3: EXPENDITURE ON GROSS DOMESTIC PRODUCT/1

S27

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

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Source: ZimStats, 2017
1. Other minerals include Ferrosilicon, Iron ore, Iron pyrite and magnesite
Table 15.4: MINERAL PRODUCTION
US$ Millions

S28

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

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source: ZIMSTATS, 2017
Table 15.5: Electricity Energy Produced and Distributed
Interconnected System
Generation Sent Out


S29


(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

2014:Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2015:Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source:ZIMSTATS ,2017
TABLE 15.6: VOLUME OF MANUFACTURING INDEX (VMI)