8/2/2019 Zimbave

1/14

Over the past ten years Zimbabwe has

experienced a pervasive economic collapse. The

crisis can largely be attributed to economic

mismanagement, poor governance, and loss of

support from the international community, all

compounded by periods of drought.

8/2/2019 Zimbave

2/14

The collapse was triggered by the governments decision

in 1997 to ignore fiscal constraints in making large payments

to veterans of the Independence struggle.

Then, in the wake of political setbacks in 1998, the

government announced the seizure of white-owned farms,

which exacerbated the instability.

Another pivotal event was the controversial Fast Track

Land Reform scheme for involuntary land redistribution in

2000, which led to a precipitous decline in productivity and

output in agriculture, formerly the mainstay of the

economy.

8/2/2019 Zimbave

3/14

Economy - overview

Zimbabwe's economy is growing at a brisk pace despite continuing

political uncertainty. Following a decade of contraction, Zimbabwe'seconomy recorded real growth of 5.9% in 2010. But the government ofZimbabwe still faces a number of difficult economic problems, including alarge external debt burden and insufficient formal employment.Zimbabwe's 1998-2002 involvement in the war in the Democratic Republicof the Congo drained hundreds of millions of dollars from the economy.

The government's land reform program, characterized by chaos andviolence, has badly damaged the commercial farming sector, thetraditional source of exports and foreign exchange and the provider of400,000 jobs, turning Zimbabwe into a net importer of food products. TheEU and the US provide food aid on humanitarian grounds, though on asmaller scale than before. Until early 2009, the Reserve Bank of

Zimbabwe routinely printed money to fund the budget deficit, causinghyperinflation. The power-sharing government formed in February 2009has led to some economic improvements, including the cessation ofhyperinflation by eliminating the use of the Zimbabwe dollar andremoving price controls. The economy is registering its first growth in adecade, but will be reliant on further political improvement for greater

growth.

8/2/2019 Zimbave

4/14

GDP (purchasing powerparity)

$5.457 billion (2010 est.)

$5.006 billion (2009 est.)$4.723 billion (2008 est.)

note: data are in 2010 USdollars

8/2/2019 Zimbave

5/14

GDP - real growth rate

9% (2010 est.)6% (2009 est.)-17.7% (2008 est.)

8/2/2019 Zimbave

6/14

GDP - composition by sector

agriculture: 19.8%industry: 24.4%services: 55.7% (2010 est.)

8/2/2019 Zimbave

7/14

Population below poverty line

68% (2004)

Labor force

3.848 million (2010 est.)

8/2/2019 Zimbave

8/14

Labor force - by occupation

agriculture: 66%industry: 10%

services: 24% (1996)Unemployment rate

95% (2009 est.)

80% (2005 est.)note: figures refl

8/2/2019 Zimbave

9/14

Unemployment, youthages 15-24

total: 24.9%

male: 28.2%female: 21.4% (2002)

8/2/2019 Zimbave

10/14

Stock of money

$NA (31 December 2008)$14.18 trillion (31 December 2007)

note: this number reflects the vastly overvaluedofficial exchange rate of 30,000 Zimbabwe dollars

per US dollar; at an unofficial rate of 800,000Zimbabwe dollars per US dollar, the stock ofZimbabwe dollars would equal only about US$500million and Zimbabwe's velocity of money (the

number of times money turns over in the course ofa year) would be nine, in line with the velocity ofmoney for other countries in the region

8/2/2019 Zimbave

11/14

Stock of narrow money

$NA (31 December 2010 est.)$2.151 million (31 December 2008 est.)

note: Zimbabwe's central bank no longer publishes dataon monetary aggregates, except for bank deposits,which amounted to $2.1 billion in November 2010; theZimbabwe dollar stopped circulating in early 2009; since

then, the US dollar and South African rand have been themost frequently used currencies; there are no reliableestimates of the amount of foreign currency circulating inZimbabwe

8/2/2019 Zimbave

12/14

Agriculture - products

corn, cotton, tobacco, wheat, coffee,sugarcane, peanuts; sheep, goats, pigsIndustries

mining (coal, gold, platinum, copper, nickel,tin, diamonds, clay, numerous metallic andnonmetallic ores), steel; wood products,cement, chemicals, fertilizer, clothing andfootwear, foodstuffs, beverages

8/2/2019 Zimbave

13/14

Reserves of foreign exchange and gold

$376 million (31 December 2010 est.)

$351 million (31 December 2009 est.)

Exchange rates

Zimbabwean dollars (ZWD)per US dollar -234.25 (2010)234 (2009)

30,000 (2007)162 (2006)78 (2005)

8/2/2019 Zimbave

14/14

CONCLUSION

Every Economy has its Own way ofrunning the Country. But the country likethis has ruined not only people life but

The smile of future Citizens