US embassy cable - 03HARARE1725

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What is Zimbabwe's GDP?

Identifier: 03HARARE1725
Wikileaks: View 03HARARE1725 at Wikileaks.org
Origin: Embassy Harare
Created: 2003-09-02 06:37:00
Classification: UNCLASSIFIED
Tags: ECON EINV PGOV ZI
Redacted: This cable was not redacted by Wikileaks.
This record is a partial extract of the original cable. The full text of the original cable is not available.

020637Z Sep 03

 
UNCLAS HARARE 001725 
 
SIPDIS 
 
STATE FOR AF/S 
NSC FOR SENIOR AFRICA DIRECTOR JFRAZER 
USDOC FOR 2037 DIEMOND 
TREASURY FOR OREN WYCHE-SHAW 
PASS USTR FLORIZELLE LISER 
STATE PASS USAID FOR MARJORIE COPSON 
 
E. O. 12958: N/A 
TAGS: ECON, EINV, PGOV, ZI 
SUBJECT: What is Zimbabwe's GDP? 
 
 
1. Summary: Sources differ widely about Zimbabwe's 
present gross domestic product (GDP).  It may be as low 
as US$3.5 billion.  End Summary. 
 
2. The GOZ's Central Statistical Office stopped 
publishing GDP figures in 1995, just before the country 
began its relentless downhill slide. 
 
Misleading World Factbook Stats 
------------------------------- 
3. The CIA's World Factbook estimates GDP at US$28 
billion or US$2,400/per capita using purchasing power 
parity.  This is wildly overstated, perhaps because the 
World Factbook converts Zimdollar totals at official 
exchange rates.  However, casual Internet surfing 
suggests most reports, almanacs and country profiles rely 
solely on World Factbook numbers. 
 
4. Given the unavailability of official data, local 
economists use a variety of means to determine GDP. 
There is no foolproof approach.  The International 
Monetary Fund estimated GDP at US$6.4 billion in recent 
documentation arising from Article IV consultations. 
 
5. Extrapolating data from the GOZ's supplementary budget 
announcement, we arrive at a considerably lower total. 
The GOZ estimates 2003 public spending at Z$1.442 
trillion (US$257 million), or - the Government boasts - 
now just 7.3 percent of GDP.  (Interestingly, foreign 
food assistance is almost as large as the national 
budget.)  Although the GOZ doesn't do the math for us, it 
assumes a GDP of only US$3.5 billion when converting at 
the present parallel exchange rate of Z$5600:US$1.  GDP 
comes to about US$24 billion when converting at the 
unsupported official rate of Z$824:US$1, but there is no 
market rationale for exchange at this level.  Assuming a 
population of 12 million, the per capita GDP would be 
US$293 at parallel and US$2,000 at official exchange 
rates.  Reading between the lines of GOZ pronouncements 
is an imperfect means of calculating GDP, but probably no 
worse than other methods floating around. 
 
Sullivan 

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