'Immediate action' required to stabilise Zimbabwe's economy - IMF

The International Monetary Fund has warned of the consequences of the Zimbabwean government not taking action to combat the country’s economic crisis.

Gene Leon, the IMF's mission chief for Zimbabwe, said that the situation remains “difficult” in the country in the aftermath of the resignation of Rogert Mugabe after 37 years in power.

Economic policies implemented by Mugabe led to vast amounts of money-printing which took inflation to unprecedented levels.

Former vice-president Emmerson Mnangagwa is expected to be sworn in as Zimbabwe's president on Friday until elections take place in 2018.

“The economic situation in Zimbabwe remains very difficult,” Leon told Reuters. "Immediate action is critical to reduce the deficit to a sustainable level, accelerate structural reforms, and re-engage with the international community to access much needed financial support."

Mnangagwa has pledged to boost the economy and reduce government spending from its current levels.

Zimbabwe is currently in arrears to the World Bank, the African Development Bank and the European Investment Bank, and has been banned from international borrowing following defaults of previous loans.