Economic overview Zimbabwe, in 36 editions.

Agriculture employs a majority three-fourths of the labor force and supplies almost 40% of exports. The agro-based manufacturing sector sector, based on agriculture and mining, produces a variety of goods and contributes about 25% 35% to GDP. Mining accounts for only 5% of both GDP and employment, but supplies of minerals and metals account for about 40% of exports. Wide year-to-year fluctuations in agricultural production over the past six years have resulted in not only an uneven growth rate, but one that did not equal on average matched the 3% annual increase in population.

Agriculture employs three-fourths of the labor force and supplies almost 40%
of exports. The manufacturing sector, based on agriculture and mining,
produces a variety of goods and contributes 35% to GDP. Mining accounts for
only 5% of both GDP and employment, but supplies of minerals and metals
account for about 40% of exports. Wide year-to-year fluctuations in
agricultural production over the past six years have resulted in an uneven
growth rate, one that on average has matched the 3% annual increase in
population. Helped by an IMF/World Bank structural adjustment program,
output rose 3.5% in 1991. A drought beginning toward the end of 1991
suggests rough going for 1992.

Agriculture employs three-fourths of the labor force and supplies almost 40%
of exports. The manufacturing sector, based on agriculture and mining,
produces a variety of goods and contributes 35% to GDP. Mining accounts for
only 5% of both GDP and employment, but supplies of minerals and metals
account for about 40% of exports. Wide year-to-year fluctuations in
agricultural
production over the past six years have resulted in an uneven
growth rate,
one that on average has matched the 3% annual increase in
population. Helped
by an IMF/World Bank structural adjustment program,
output rose 3.5% in
1991. A severe drought beginning toward in 1991/92 caused the end of 1991 economy to contract by about
suggests rough going for 10% in 1992.

Agriculture employs three-fourths of the labor force and supplies
almost 40%
of exports. The manufacturing sector, based on agriculture
and mining,
produces a variety of goods and contributes 35% to GDP.
Mining accounts for
only 5% of both GDP and employment, but supplies
of minerals and metals
account for about 40% of exports. Wide
fluctuations in agricultural
production over the past six years have
resulted in an uneven growth rate,
one that on average has matched the
3% annual increase in population. Helped
by an IMF/World Bank
structural adjustment program, output rose 3.5% in
1991. A severe
drought in 1991/92 caused the economy to contract by about
10% in
1992.

Agriculture employs three-fourths of the labor force and supplies
supplies almost 40% of exports. The manufacturing sector, based on agriculture
agriculture and mining, produces a variety of goods and contributes
35% to GDP.
Mining accounts for only 5% of both GDP and employment, but supplies
of but minerals and metals account for about 40% of exports. Wide Severe
fluctuations drought caused GDP to drop 8% in agricultural production over the past six years have 1992, with growth rebounding to 2% in
resulted 1993 and 3.5% in an uneven growth rate, one that 1994. Despite the lingering effects of the drought on average has matched
economic and social conditions, the government is continuing to push
3% annual increase in population. Helped by an its IMF/World Bank
structural adjustment program, output rose 3.5% in 1991. A severe
drought in 1991/92 caused the economy to contract by about 10% in program aimed at encouraging
1992. exports and foreign investment.

Agriculture employs three-fourths 70% of the labor force and of
this landlocked nation and supplies almost 40% of exports. The manufacturing sector, based on
agriculture and mining, produces a variety of goods and contributes
35% to GDP. Mining
accounts for only 5% of both GDP and employment,
but minerals and
metals account for about 40% of exports. Severe
drought caused GDP
to drop 8% in 1992, with growth rebounding to 2% in
1993 and 3.5% 4.5% in 1994. Despite the lingering effects of the drought on
economic and social conditions, the 1994, only to drop by 2.4% in 1995. The government is continuing to push
push its IMF/World Bank structural adjustment program aimed at encouraging
encouraging exports and foreign investment. Officials face the
difficult task of restraining expenditures in their effort to keep
inflation within bounds.

Agriculture employs 70% of the labor force of
this
landlocked nation and supplies almost 40% of exports. Mining
accounts
for only 5% of both GDP and employment, but minerals and
metals
account for about 40% of exports. Severe drought caused GDP
to drop 8%
in 1992, with growth rebounding to 2% in 1993 and 4.5% in
1994, only
to drop by 2.4% in 1995. The government is continuing to
push its
IMF/World Bank structural adjustment program aimed at
encouraging
exports and foreign investment. Officials face the
difficult task of
restraining expenditures in their effort to keep
inflation within
bounds.

Agriculture employs 70% 27% of the labor force of this
landlocked nation and supplies almost 40% 25% of exports. Mining accounts
for only 5% of both GDP and employment, but minerals and metals
account for about 40% 20% of exports. Severe drought caused GDP The government is working to drop 8%
consolidate earlier progress in 1992, with growth rebounding to 2% developing a market-oriented economy.
Although the IMF suspended support for Zimbabwe's economic structural
adjustment program (ESAP) in 1993 1995, due to government failure to meet
key targets, recent talks between the government and 4.5% in 1994, only the Fund have
held hope for renewed support if Zimbabwe remains committed to drop by 2.4% in 1995. The government
budgetary targets. A key element of the budget is continuing to push its the Zimbabwe Program
IMF/World Bank structural adjustment program aimed at encouraging for Socio-Economic Transformation (ZIMPREST), the second phase of
exports ESAP, whose goals include increased commercialization and foreign investment. Officials
privatization of government-owned enterprises and more
"outward-looking" trade and investment policies. The World Bank
resumed balance of payments support to Zimbabwe in early 1998.
Government officials face the difficult task of
restraining
expenditures in their effort to keep inflation within
bounds.

The government of Zimbabwe faces a wide variety
of difficult economic problems as it struggles to consolidate
earlier progress in developing a market-oriented economy. Its
involvement in the war in the Democratic Republic of the Congo, for
example, has already drained hundreds of millions of dollars from
the economy. Badly needed support from the IMF suffers delays in
part because of the country's failure to meet budgetary goals.
Inflation rose from an annual rate of 25% 32% in January 1998 to 47% in
December and will almost certainly continue to increase 59% in 1999. The
economy is being steadily weakened by AIDS; Zimbabwe has one of the
highest rates rate of infection in the world. Per capita GDP, which is
twice the average of the poorer sub-Saharan nations, will increase
little if any in the near-term, and Zimbabwe will suffer continued
frustrations in developing its agricultural and mineral resources.

The government of Zimbabwe faces a wide variety of difficult economic problems as it struggles to consolidate earlier progress in developing moves to develop a market-oriented economy. Its involvement in the war in the Democratic Republic of the Congo, for example, has already drained hundreds of millions of dollars from the economy. Badly needed support from the IMF suffers delays in part because of the country's failure to meet budgetary goals. Inflation rose from an annual rate of 32% in 1998 to 59% in 1999. 1999 and 60% in 2000. The economy is being steadily weakened by excessive government deficits and AIDS; Zimbabwe has the highest rate of infection in the world. Per capita GDP, which is twice the average of the poorer sub-Saharan nations, will increase little if any in the near-term, and Zimbabwe will suffer continued frustrations in developing its agricultural and mineral resources.

The government of Zimbabwe faces a wide variety of difficult economic problems as it struggles to consolidate earlier moves to develop a market-oriented economy. Its involvement in the war in the Democratic Republic of the Congo, for example, has already drained hundreds of millions of dollars from the economy. Badly needed support from the IMF suffers delays in part has been suspended because of the country's failure to meet budgetary goals. Inflation rose from an annual rate of 32% in 1998 to 59% in 1999 and 1999, to 60% in 2000. 2000, and to 100% by yearend 2001. The economy is being steadily weakened by excessive government deficits deficits, AIDS, and AIDS; Zimbabwe rampant inflation. The government's land reform program, characterized by chaos and violence, has the highest rate of infection in derailed the world. Per capita GDP, which is twice commercial sector, the average traditional source of the poorer sub-Saharan nations, will increase little if any in the near-term, exports and Zimbabwe will suffer continued frustrations in developing its agricultural foreign exchange and mineral resources. the provider of 400,000 jobs. Distribution of income is extremely unequal.

The government of Zimbabwe faces a wide variety of difficult economic problems as it struggles to consolidate earlier moves to develop a market-oriented economy. 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, for example, has already drained hundreds of millions of dollars from the economy. Badly needed support from the IMF has been suspended because of the country's failure to meet budgetary goals. Inflation rose from an annual rate of 32% in 1998 to 59% in 1999, to 60% in 2000, and to over 100% by yearend 2001. The economy is being steadily weakened by excessive government deficits, AIDS, and rampant inflation. 2001, to 228% in early 2003. The government's land reform program, characterized by chaos and violence, has derailed nearly destroyed the commercial farming sector, the traditional source of exports and foreign exchange and the provider of 400,000 jobs. Distribution of income is extremely unequal.

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, for example, drained hundreds of millions of dollars from the economy. Badly needed support from the IMF has been suspended because of the country's failure to meet budgetary goals. Inflation rose from an annual rate of 32% in 1998 to 59% in 1999, to 60% 383% in 2000, to over 100% by yearend 2001, 2003, and is expected to 228% reach 700% in early 2003. 2004. The government's land reform program, characterized by chaos and violence, has nearly destroyed badly damaged the commercial farming sector, the traditional source of exports and foreign exchange and the provider of 400,000 jobs.

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, for example, drained hundreds of millions of dollars from the economy. Badly needed support from the IMF has been suspended because of the country's failure to meet budgetary goals. Inflation rose from an annual rate of 32% in 1998 to 383% in 2003, and is expected 133% at the end of 2004, while the exchange rate fell from 24 Zimbabwean dollars per US dollar to reach 700% 6,200 in 2004. the same time period. 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.

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, for example, drained hundreds of millions of dollars from the economy. Badly needed support from the IMF has been suspended because of the country's failure to meet budgetary goals. Inflation rose from an government's arrears on past loans, which it began repaying in 2005. The official annual inflation rate of rose from 32% in 1998 1998, to 133% at the end of 2004, while and 585% at the end of 2005, although private sector estimates put the figure much higher. Meanwhile, the official exchange rate fell from 24 Zimbabwean dollars per US dollar in 1998 to 6,200 96,000 in the same time period. mid-January 2006. 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. jobs, turning Zimbabwe into a net importer of food products.

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, for example, 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% at the end of in 2004, and 585% at the end of in 2005, and approached 1000% in 2006, although private sector estimates put the figure much higher. Meanwhile, the official exchange rate fell from 24 approximately 1 (revalued) Zimbabwean dollars dollar per US dollar in 1998 2003 to 96,000 160 per US dollar in mid-January 2006. 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.

The government of Zimbabwe faces a wide variety of difficult economic problems as it struggles with an unsustainable fiscal deficit, an overvalued official exchange rate, soaring inflation, hyperinflation, and bare store 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. The EU and the US provide food aid on humanitarian grounds. Badly needed support from the IMF has been suspended because of the government's arrears on past loans, which it began repaying in 2005. loans and the government's unwillingness to enact reforms that would stabilize the economy. The Reserve Bank of Zimbabwe routinely prints money to fund the budget deficit, causing the official annual inflation rate rose to rise from 32% in 1998, to 133% in 2004, 585% in 2005, and approached passed 1000% in 2006, although private and 26000% in November 2007. Private sector estimates put the figure much higher. of inflation in 2007 are well above 100,000%. Meanwhile, the official exchange rate fell from approximately 1 (revalued) Zimbabwean dollar per US dollar in 2003 to 160 30,000 per US dollar in 2006. 2007.

The government of Zimbabwe faces a wide variety of difficult economic problems as it struggles with an unsustainable fiscal deficit, an overvalued official exchange rate, hyperinflation, and bare store 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. The EU and the US provide food aid on humanitarian grounds. Badly needed support from the IMF has been suspended because of the government's arrears on past loans and the government's unwillingness to enact reforms that would stabilize the economy. The Reserve Bank of Zimbabwe routinely prints money to fund the budget deficit, causing the official annual inflation rate to rise from 32% in 1998, to 133% in 2004, 585% in 2005, passed 1000% past 1,000% in 2006, and 26000% 26,000% in November 2007. Private sector estimates of inflation 2007, and to 11.2 million percent in 2007 are well above 100,000%. 2008. Meanwhile, the official exchange rate fell from approximately 1 (revalued) Zimbabwean dollar per US dollar in 2003 to 30,000 per US dollar in September 2007.

The government of Zimbabwe faces a wide variety of difficult economic problems as it struggles with an unsustainable fiscal deficit, an overvalued official exchange rate, hyperinflation, and bare store shelves. problems. 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. The EU and the US provide food aid on humanitarian grounds. Badly needed support from the IMF has been suspended because of the government's arrears on past loans and the government's unwillingness to enact reforms that would stabilize Until early 2009, the economy. The Reserve Bank of Zimbabwe routinely prints printed money to fund the budget deficit, causing the official annual inflation rate to rise from 32% in 1998, to 133% in 2004, 585% in 2005, past 1,000% in 2006, and 26,000% hyperinflation. The power-sharing government formed in November 2007, and February 2009 has led to 11.2 million percent in 2008. Meanwhile, some economic improvements, including the official exchange rate fell from approximately 1 (revalued) Zimbabwean dollar per US dollar in 2003 to 30,000 per US cessation of hyperinflation by eliminating the use of the Zimbabwe dollar and removing price controls. The economy is registering its first growth in September 2007. a decade, but will be reliant on further political improvement for greater growth.

The Zimbabwe's economy is growing at a brisk pace despite continuing political uncertainty. Following a decade of contraction, Zimbabwe's economy recorded real growth of 5.9% in 2010. But the government of Zimbabwe still faces a wide variety number of difficult economic problems. Its problems, including a large external debt burden and insufficient formal employment. Zimbabwe's 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. The EU and the US provide food aid on humanitarian grounds. grounds, though on a smaller scale than before. Until early 2009, the Reserve Bank of Zimbabwe routinely printed money to fund the budget deficit, causing hyperinflation. The power-sharing government formed in February 2009 has led to some economic improvements, including the cessation of hyperinflation by eliminating the use of the Zimbabwe dollar and removing price controls. The economy is registering its first growth in a decade, but will be reliant on further political improvement for greater growth.

Zimbabwe's economy is growing at a brisk pace despite continuing political uncertainty. Following a decade of contraction, contraction from 1998 to 2008, Zimbabwe's economy recorded real growth of 5.9% more than 9% per year in 2010. But 2010-11, before slowing to 5% in 2012, due in part to a poor harvest and low diamond revenues. However, the government of Zimbabwe still faces a number of difficult economic problems, including infrastructure and regulatory deficiencies, ongoing indigenization pressure, policy uncertainty, a large external debt burden burden, and insufficient formal employment. Zimbabwe's 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 subsequent 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. The EU and the US provide food aid on humanitarian grounds, though on a smaller scale than before. Until early 2009, the Reserve Bank of Zimbabwe routinely printed money to fund the budget deficit, causing hyperinflation. The power-sharing government formed Dollarization in February early 2009 has led to some economic improvements, including - which allowed currencies such as the cessation of hyperinflation by eliminating Botswana pula, the use of South Africa rand, and the Zimbabwe US dollar to be used locally - ended hyperinflation and removing restored price controls. The economy is registering its first growth in a decade, stability but will be reliant on further political improvement for greater exposed structural weaknesses that continue to inhibit broad-based growth.

Zimbabwe's economy is growing despite continuing political uncertainty. Following a decade of contraction from 1998 to 2008, Zimbabwe's economy recorded real growth of more than 9% per year in 2010-11, before slowing to 5% in 2012, due in part to a poor harvest and low diamond revenues. However, the government of Zimbabwe still faces a number of difficult economic problems, including infrastructure and regulatory deficiencies, ongoing indigenization pressure, policy uncertainty, a large external debt burden, and insufficient formal employment. Zimbabwe's Zimbabwe''s 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 government''s subsequent land reform program, characterized by chaos and violence, 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. Until early 2009, the Reserve Bank of Zimbabwe routinely printed money to fund the budget deficit, causing hyperinflation. Dollarization in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - ended hyperinflation and restored price stability reduced inflation to about 10%, but exposed structural weaknesses that continue to inhibit broad-based growth.

Zimbabwe's economy is growing despite continuing political uncertainty. Following a decade of contraction from 1998 to 2008, Zimbabwe's economy recorded real growth of more than 9% roughly 10% per year in 2010-11, before slowing to 5% in 2012, 2012-13 due in part to a poor harvest harvests and low diamond revenues. However, the The government of Zimbabwe still faces a number of difficult economic problems, including infrastructure and regulatory deficiencies, ongoing indigenization pressure, policy uncertainty, a large external debt burden, and insufficient formal employment. Zimbabwe''s 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 subsequent land reform program, characterized by chaos and violence, 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. Until early 2009, the Reserve Bank of Zimbabwe routinely printed money to fund the budget deficit, causing hyperinflation. Dollarization in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - ended hyperinflation and reduced inflation to about 10%, below 10% per year, but exposed structural weaknesses that continue to inhibit broad-based growth.

Zimbabwe's economy is growing despite continuing political uncertainty. depends heavily on its mining and agriculture sectors. Following a decade of contraction from 1998 to 2008, Zimbabwe's the economy recorded real growth of roughly more than 10% per year in 2010-11, from 2010-13, before slowing to roughly 3% in 2012-13 2014 due to poor harvests and harvests, low diamond revenues. The government of Zimbabwe faces a number of difficult economic problems, including infrastructure revenues, and decreased investment. Infrastructure and regulatory deficiencies, ongoing indigenization pressure, policy uncertainty, a poor investment climate, a large public and external debt burden, and insufficient formal employment. extremely high government wage expenses impede the country’s economic performance. Until early 2009, the Reserve Bank of Zimbabwe (RBZ) routinely printed money to fund the budget deficit, causing hyperinflation. Dollarization in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - ended hyperinflation and reduced inflation below 10% per year, but exposed structural weaknesses that continue to inhibit broad-based growth. The RBZ introduced bond coins denominated in 1, 5, 10, and 25 cent increments on a par with the US dollar in December 2014, more than five years after the Zimbabwe dollar was taken out of circulation. In January 2015, as part of the government’s effort to boost trade and attract foreign investment, the RBZ announced that the Chinese renmimbi, Indian rupee, Australian dollar, and Japanese yen would be accepted as legal tender in Zimbabwe. Zimbabwe’s government entered a second Staff Monitored Program with the International Monetary Fund in 2014 and undertook other measures to reengage with international financial institutions. Foreign and domestic investment continues to be hindered by the lack of clarity regarding the government’s Indigenization and Economic Empowerment Act.

Zimbabwe's economy depends heavily on its mining and agriculture sectors. Following a decade of contraction from 1998 to 2008, the economy recorded real growth of more than 10% per year from in the period 2010-13, before slowing to roughly 3% in 2014 due to poor harvests, low diamond revenues, and decreased investment. Infrastructure Lower mineral prices, infrastructure and regulatory deficiencies, a poor investment climate, a large public and external debt burden, and extremely high government wage expenses impede the country’s economic performance.
Until early 2009, the Reserve Bank of Zimbabwe (RBZ) routinely printed money to fund the budget deficit, causing hyperinflation. Dollarization in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - ended hyperinflation and reduced inflation below 10% per year, but exposed structural weaknesses that inhibit broad-based growth. year. The RBZ introduced bond coins denominated in 1, 5, 10, and 25 cent increments on a par with the US dollar in December 2014, more than five years after the Zimbabwe dollar was taken out of circulation. In January 2015, as part of the government’s effort to boost trade and attract foreign investment, the RBZ announced that the Chinese renmimbi, Indian rupee, Australian dollar, and Japanese yen would be accepted as legal tender in Zimbabwe.
Zimbabwe’s government entered a second Staff Monitored Program with the International Monetary Fund IMF in 2014 and undertook other measures to reengage with international financial institutions. Foreign and domestic investment continues to be hindered by the lack of clarity regarding the government’s Indigenization and Economic Empowerment Act. In 2015 the depreciation of the South African rand against the US dollar has led to deflation in Zimbabwe as prices for South African imports decline while the costs of domestic production in US dollars remains stable.

Zimbabwe's economy depends heavily on its mining and agriculture sectors. Following a decade of contraction from 1998 to 2008, the economy recorded real growth of more than 10% per year in the period 2010-13, before slowing to roughly 3% 4% in 2014 due to poor harvests, low diamond revenues, and decreased investment. Growth turned negative in 2016. Lower mineral prices, infrastructure and regulatory deficiencies, a poor investment climate, a large public and external debt burden, and extremely high government wage expenses impede the country’s economic performance.
Until early 2009, the Reserve Bank of Zimbabwe (RBZ) routinely printed money to fund the budget deficit, causing hyperinflation. Dollarization Adoption of a multi-currency basket in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - ended hyperinflation and reduced inflation below 10% per year. The RBZ introduced bond coins denominated in 1, 5, 10, and 25 cent increments on a par with the US dollar in December 2014, more than five years after the Zimbabwe dollar was taken out of circulation. In January 2015, as part of the government’s effort to boost trade and attract foreign investment, the RBZ announced that the Chinese renmimbi, Indian rupee, Australian dollar, and Japanese yen would be accepted as legal tender in Zimbabwe. Zimbabwe, though transactions were predominantly carried out in US dollars and South African rand until 2016, when the rand’s devaluation and instability led to near-exclusive use of the US dollar. The government in November 2016 began releasing bond notes, a parallel currency legal only in Zimbabwe which the government claims will have a one-to-one exchange ratio with the US dollar, to ease cash shortages. Bond notes began trading at a discount of up to 10% in the black market by the end of 2016.
Zimbabwe’s government entered a second Staff Monitored Program with the IMF in 2014 and undertook other measures to reengage with international financial institutions. Zimbabwe repaid roughly $108 million in arrears to the IMF in October 2016, but financial observers note that Zimbabwe is unlikely to gain new financing because the government has not disclosed how it plans to repay more than $1.7 billion in arrears to the World Bank and African Development Bank. International financial institutions want Zimbabwe to implement significant fiscal and structural reforms before granting new loans. Foreign and domestic investment continues to be hindered by the lack of land tenure and titling, the inability to repatriate dividends to investors overseas, and the lack of clarity regarding the government’s Indigenization and Economic Empowerment Act. In 2015 the depreciation of the South African rand against the US dollar has led to deflation in Zimbabwe as prices for South African imports decline while the costs of domestic production in US dollars remains stable.

Zimbabwe's economy depends heavily on its mining and agriculture sectors. Following a decade of contraction from 1998 to 2008, the economy recorded real growth of more than 10% per year in the period 2010-13, before slowing to roughly 4% falling below 3% in 2014 the period 2014-17, due to poor harvests, low diamond revenues, and decreased investment. Growth turned negative in 2016. Lower mineral prices, infrastructure and regulatory deficiencies, a poor investment climate, a large public and external debt burden, and extremely high government wage expenses impede the country’s economic performance.
Until early 2009, the Reserve Bank of Zimbabwe (RBZ) routinely printed money to fund the budget deficit, causing hyperinflation. Adoption of a multi-currency basket in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - reduced inflation below 10% per year. In January 2015, as part of the government’s effort to boost trade and attract foreign investment, the RBZ announced that the Chinese renmimbi, Indian rupee, Australian dollar, and Japanese yen would be accepted as legal tender in Zimbabwe, though transactions were predominantly carried out in US dollars and South African rand until 2016, when the rand’s devaluation and instability led to near-exclusive use of the US dollar. The government in November 2016 began releasing bond notes, a parallel currency legal only in Zimbabwe which the government claims will have a one-to-one exchange ratio with the US dollar, to ease cash shortages. Bond notes began trading at a discount of up to 10% in the black market by the end of 2016.
Zimbabwe’s government entered a second Staff Monitored Program with the IMF in 2014 and undertook other measures to reengage with international financial institutions. Zimbabwe repaid roughly $108 million in arrears to the IMF in October 2016, but financial observers note that Zimbabwe is unlikely to gain new financing because the government has not disclosed how it plans to repay more than $1.7 billion in arrears to the World Bank and African Development Bank. International financial institutions want Zimbabwe to implement significant fiscal and structural reforms before granting new loans. Foreign and domestic investment continues to be hindered by the lack of land tenure and titling, the inability to repatriate dividends to investors overseas, and the lack of clarity regarding the government’s Indigenization and Economic Empowerment Act.

Zimbabwe's economy depends heavily on its mining and agriculture sectors. Following a contraction from 1998 to 2008, the economy recorded real growth of more than 10% per year in the period 2010-13, before falling below 3% in the period 2014-17, due to poor harvests, low diamond revenues, and decreased investment. Lower mineral prices, infrastructure and regulatory deficiencies, a poor investment climate, a large public and external debt burden, and extremely high government wage expenses impede the country’s economic performance.
Until early 2009, the Reserve Bank of Zimbabwe (RBZ) routinely printed money to fund the budget deficit, causing hyperinflation. Adoption of a multi-currency basket in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - reduced inflation below 10% per year. In January 2015, as part of the government’s effort to boost trade and attract foreign investment, the RBZ announced that the Chinese renmimbi, Indian rupee, Australian dollar, and Japanese yen would be accepted as legal tender in Zimbabwe, though transactions were predominantly carried out in US dollars and South African rand until 2016, when the rand’s devaluation and instability led to near-exclusive use of the US dollar. The government in November 2016 began releasing bond notes, a parallel currency legal only in Zimbabwe which the government claims will have a one-to-one exchange ratio with the US dollar, to ease cash shortages. Bond notes began trading at a discount of up to 10% in the black market by the end of 2016.
Zimbabwe’s government entered a second Staff Monitored Program with the IMF in 2014 and undertook other measures to reengage with international financial institutions. Zimbabwe repaid roughly $108 million in arrears to the IMF in October 2016, but financial observers note that Zimbabwe is unlikely to gain new financing because the government has not disclosed how it plans to repay more than $1.7 billion in arrears to the World Bank and African Development Bank. International financial institutions want Zimbabwe to implement significant fiscal and structural reforms before granting new loans. Foreign and domestic investment continues to be hindered by the lack of land tenure and titling, the inability to repatriate dividends to investors overseas, and the lack of clarity regarding the government’s Indigenization and Economic Empowerment Act.