Zimbabwe’s Composite Indicator (CI) index is calculated at 1.8 based on the October 2019 WEO and the 2018 CPIA data, indicating that the county’s debt-carrying capacity is ‘weak’, which is the same classification as under the previous DSA.
In this DSA, external debt is defined on a residency basis.
Inflation spiked to 521 percent (y-o-y) in December 2019.
Staff estimates a grant element of approximately 30 percent, which is below the 35 percent requirement for it to be considered officially concessional.
To capture the various factors affecting a country’s debt carrying capacity, the DSF uses a composite indicator (CI). The CI captures the impact of the several factors through a weighted average of the World Bank’s CPIA score, the country’s real GDP growth, remittances, international reserves, and world growth.
2019 GDP will also be the first full year of estimation where the Zimbabwe dollar is used to collect the data, hence it will be an important benchmark for many of the assumptions made to convert 2018 national accounts statistics from USD to ZWL.