Exchange rate movements complicating economic research – ZIMSTAT

Exchange rate movements complicating economic research – ZIMSTAT

Brian Rungano Temba

The Zimbabwe National Statistics Agency (ZIMSTAT) has bemoaned the multicurrency system and movements in exchange rates, saying they complicate research processes.

ZIMSTAT Director General Mr Taguma Mahonde said this today during a workshop which saw the presentation of the 2019-2020 Provincial Gross Domestic Product (PGDP).

The GDP statistics are compiled in support of devolution and decentralization.

“In response to the demand for devolution statistics by stakeholders, ZIMSTAT released Provincial GDP figures for the period 2012 to 2018. The Agency used the hybrid approach, which was based on data from surveys and administrative sources to compile Provincial GDP statistics,” said Mr Muhonde.

For the 2019-2020 statistics ZIMSTAT utilised secondary data from Government Agencies and surveys which include among others Income Consumption and Expenditure Survey, Quarterly employment, Agriculture and Livestock Survey.

He said that the situation in Zimbabwe where both Zimbabwean dollars (ZWL) and American dollars (USD) are used has been riddled with fluctuating exchange rates while the data ZIMSTAT collects is in ZWL.

“It would be desirable that we can get data in USD so we can work with a more consistent figure which encourages confidence in the credibility of our research,” he said.

Masvingo, Matebeleland South and Bulawayo’s provincial Gross Domestic Product were dominated by the Wholesale and Retail.

Hinting towards a general lack in manufacturing and Agricultural activities between 2019 and 2020.

Provinces that experienced a spike in Manufacturing in their GDP are Harare Metropolitan Province and Matebeleland North between 2019 and 2020.

Harare which was predominantly the merchant’s haven has began to sway more towards manufacturing with the resuscitation of heavy and light industries by the Second Republic.

Matebeleland North, predominantly a Mining and Quarrying state has also diversified, having manufacturing as the mainstay of their provincial GDP.

Midlands, Mashonaland West provinces remain dorminantly Mining and Quarrying states while Mashonaland East, Manicaland and Mashonaland Central retain Agriculture, Hunting, Fishing and Forestry as mainstays in their Provincial GDPs.

Reserve Bank of Zimbabwe Deputy Governor Dr Jasmine Chipika said the presentation by ZIMSTATS was interesting and highlighted the GDP mainstays clearly, however failed to denote if the national productivity was on a higher or reclining trajectory.

“In terms of wealth creation, we need the research by ZIMSTATS to be able to show if the nation at Provincial levels has improved between the years 2019 and 2020.

Without that that we cannot quantify and measure the improvements of devolution policies, regardless of which currency we are collecting data in, ” said Dr Chipika.