THE Economist Intelligence Unit (EIU) said in its latest country outlook for Zimbabwe on Tuesday that the country’s GDP was estimated to have contracted by 6% in 2000 and was forecast to contract by 5,6% in 2001. Initially the main factor behind the slowdown was the overvalued exchange rate, which caused foreign currency shortages, made many imports unobtainable and prevented producers from recouping their production costs in domestic currency terms. However, the EIU said, these problems were now compounded by the ongoing political crisis, poor macroeconomic situation, fuel shortages and electricity cuts, all of which were placing severe constraints on the economy. – IRIN