ZIMBABWE

-The economist's worst nightmare-

Zimbabwe on the map

Introduction

Gain independence from Britian on 1965

Had a well-diversed economy.
A lower middle-income country
Main sector is agriculture
Experiencing major economic problems
such as hyperinfaltion and huge foreign
debts .

Quick Facts
Population: 13.1 million
GDP (PPP): $10.3 billion 3.0% growth in
2013 5-year compound annual growth
8.9% $788 per capita
Unemployment: 5.5%
Inflation (CPI): 1.6%
FDI Inflow: $400.0 million
Public Debt: 54.7% of GDP

FULL EMPLOYMENT

 Uses the International Conference of

Labour Statisticians (ICLS) definition of
employment
Had worked at least one hour a week
the Zimbabwe National Statistical Agency
reports that from the countries population :
50 percent in agriculture
42 percent communal farmers or communal
farm workers
60 percent works in the informal sector.
the unemployed rate is11%.

PRICE STABILITY

Zimbabwe Inflation Rates 2005-2015

 July 2008, highest is 2660522.20 percent

December 2009, lowest at -7.50 percent
Jan 2015, -1.3 percent.
Steve Hanke, professor of applied economics
at Johns Hopkins University, said "Prices
double every 24.7 hours," and "Shops have
simply stopped accepting Zimbabwean dollars."
January 2009, the RBZ issued the world's
first 100 trillion dollar note.
The government spends, financed RBZ- by
printing them.

WORTHLESS MONEY !

ECONOMIC GROWTH

 GDP of $10.48 billion (2013)

6.3% (2010), 11.9% (2012), 3.7%(2014)
Composition by sectors:
Agriculture 20.1%, Industries 25.4%, and
Service sector 54.5%
GDP per capita- $441.15 (2014)
gross national savings as a percentage of
GDP , 28% in 1995, dropped to 5% in 2001
and then to 0% in 2006.

External Balance

 The latest value for External balance on goods

and services in current USD in Zimbabwe was
($3,710,862,000.00) as of 2011. Over the past
36 years, the value for this indicator has
fluctuated between $267,085,300.00 in 1999
and ($3,710,862,000.00) in 2011.
(% of GDP) in Zimbabwe was -38.43 as of
2011. Its highest value over the past 36 years
was 3.89 in 1999, while its lowest value was
-38.43 in 2011.

Prospect of the Country

Zimbabwe has a high potential to
become a mighty agricultural state just
as it was.
Maintain peace to lift the economic
sanctions imposed by the UN.
Sound money-hyperinflation would be
prevented.

Conclusion
Main problem is leadership. -political
reform
Hyperinflation- sound money
Economic sanctions- maintain peace.
Microeconomic reforms and stop money
fiddlement.

Just doing
some
shopping.

When you see it.....

 Even with fiscal and monetary policies

reform, there is no use without solving
the main core problem
-money printing that leads to
hyperinflation.
The government should stop spending
money they do not own or have by
printing them.
Thus, the only solution left available is
microeconomic reforms

Microeconomic Reform

Quote of the Day

"We spend money that we don't

have for the things that we
don't need to please the people
we don't like."
-9gag-