Economics
IMF Warns Zimbabwe Against Pay Boost as Living Standards Crash
- New currency has eroded spending power of government workers
- Finance minister Ncube says he advocates increasing wages
Employees on the production line of a factory in Zimbabwe.
Photographer: Zinyange Auntony/AFP via Getty Images
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The International Monetary Fund cautioned Zimbabwe’s government against boosting wages for state workers unless it has sufficient tax revenue to do so after the introduction of a new currency pushed up inflation and reduced spending power to a 10th of what it was six months ago.