An economist has warned that Zimbabwe's current economic stability remains fragile due to significant structural weaknesses. Carren Pindiriri, speaking at an insurance conference in Victoria Falls, stated that while the economy shows improved performance with 6% growth projected for 2025, underlying issues pose serious risks.
Pindiriri explained that a high informality rate of 76.1 percent and a public debt exceeding 23 billion US dollars threaten sustained stability. He noted that price and exchange rate instability directly reduce demand for insurance, as high inflation increases premium costs. The local Zig currency has held steady recently, but he cautioned that any sharp policy changes could trigger new inflationary pressures.
He advised the insurance sector to strengthen currency-hedging strategies and develop products for the informal market. Pindiriri concluded that the industry's future growth depends entirely on the nation maintaining macroeconomic stability and building consumer confidence.
Pindiriri explained that a high informality rate of 76.1 percent and a public debt exceeding 23 billion US dollars threaten sustained stability. He noted that price and exchange rate instability directly reduce demand for insurance, as high inflation increases premium costs. The local Zig currency has held steady recently, but he cautioned that any sharp policy changes could trigger new inflationary pressures.
He advised the insurance sector to strengthen currency-hedging strategies and develop products for the informal market. Pindiriri concluded that the industry's future growth depends entirely on the nation maintaining macroeconomic stability and building consumer confidence.
