Economy of Zimbabwe
Overview
The government of Zimbabwe faces a wide variety of difficult economic problems as it struggles with an unsustainable fiscal deficit, an overvalued exchange rate, soaring inflation, and bare shelves. Its 1998-2002 involvement in the war in the Democratic Republic of the Congo drained hundreds of millions of dollars from the economy. The government's land reform program, characterized by chaos and violence, has badly damaged the commercial farming sector, the traditional source of exports and foreign exchange and the provider of 400,000 jobs, turning Zimbabwe into a net importer of food products. Badly needed support from the IMF has been suspended because of the government's arrears on past loans, which it began repaying in 2005. The official annual inflation rate rose from 32% in 1998, to 133% in 2004, 585% in 2005, and approached 1000% in 2006, although private sector estimates put the figure much higher. Meanwhile, the official exchange rate fell from approximately 1 (revalued) Zimbabwean dollar per US dollar in 2003 to 250 per US dollar in August 2006.
GDP
Real Growth Rate
0%
Per Capita
USD 2,000
From Agriculture
18%
From Industry
23%
From Services
59%
Labour Force
Available for Work
3,958
Working in Agriculture
66%
Working in Industry
10%
Working in Services
24%
Unemployment Rate
80%
Population Below Poverty Line
80%
Inflation Rate
100%
Investment as Percent of GDP
16%
Budget
Revenues
USD 1,411 (m)
Expenditures
USD 1,924 (m)
Public Debt
US$ 108.40 (m)
Agricultural Products
Corn, cotton, tobacco, wheat, coffee, sugarcane, peanuts; sheep, goats, pigs.
Core Industries
Mining (coal, gold, platinum, copper, nickel, tin, clay, numerous metallic and nonmetallic ores), steel; wood products, cement, chemicals, fertilizer, clothing and footwear, foodstuffs, beverages.
Exports
Value
USD 1,766 (m)
Commodities
Cotton, tobacco, gold, ferroalloys, textiles/clothing.
Partners
South Africa 27%, China 7.9%, Japan 6.8%, Zambia 5.6%, Netherlands 5.4%, US 4.9%, Italy 4.5%, Germany 4.4% (2005).
Imports
Value
USD 2,055 (m)
Commodities
Machinery and transport equipment, other manufactures, chemicals, fuels.
Partners
South Africa 52.5%, China 5.7%, Botswana 4.1% (2005).
External Debt
USD 5,260 (m)
Fiscal Year
Calendar year
