Monthly Economic Update

Contents

1. Inflation and Cost of Living 1

2. A Review of the Various Sectors of the Economy 2

3. Foreign Currency Market 8

4. Money Market & Interest Rates 8

5. Equities Market & Corporate Briefs 10

6. Regional Economies 11

7. International News 12

8. Commodities Markets 13

9. Appendix 16

Local

* Zimbabwe’s year-on-year inflation rate for the month of December 2012 dropped to 2.91%.

* The monthly basket decreased to US$572 from the November figure of US$572.63 .

* Some banks fall to meet the minimum capital requirement deadline.

* Zimbabwe’s manufacturing sector, the most bruised economic driver for the year 2012.

* Zimbabwe’s mining sector export receipts expected to reach US$2.5 billion in 2013.

* The tourism industry appears headed for a bright future.

* Zimbabwe is expected to expand Kariba South Power Station.

Regional &International

* Growth in South Africa's retail sales quickened to 3.4% year-on-year in November.

* Kenya's government expects its economy to expand by 5.6% in 2013.

* The US dollar firms against major currencies.

* The World Bank cut the global growth forecast for 2013.

* USA unemployment rate remained at 7.8%.

* The German economy grew by 0.7% in 2012.

* Gold, silver, platinum and crude oil prices decreases.

Monthly Economic Update

(Covering the month of December 2012)

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Inflation and Cost of Living

a) Inflation

Zimbabwe’s year-on-year inflation rate for the month of December 2012 marginally dropped to 2.91%, shedding 0.08 percentage points on the November 2012 rate of 2.99%, the Zimbabwe National Statistics Agency said.

The year-on-year...