ZIMBABWE

-The economist's worst nightmare-

Zimbabwe on the map

IntroductionGain independence from Britian on 1965Had a well-diversed economy.A lower middle-income countryMain sector is agricultureExperiencing major economic problems such as hyperinfaltion and huge foreign debts .

Quick FactsPopulation: 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 employmentHad worked at least one hour a week

the Zimbabwe National Statistical Agency reports that from the countries population :50 percent in agriculture42 percent communal farmers or communal farm workers60 percent works in the informal sector.the unemployed rate is11%.

PRICE STABILITY

Zimbabwe Inflation Rates 2005-2015

July 2008, highest is 2660522.20 percentDecember 2009, lowest at -7.50 percentJan 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.

ConclusionMain problem is leadership. -political reformHyperinflation- 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-