Zimbabwe was one of the countries that were hit hard by the worldwide recession in the year 2008.Living above the poverty line was impossible, even for the middle class and upper-middle class. Prices were extortionately high for basic commodities.Zimbabwe has a population of 15 million people. The most populated city is Harare, the capital of Zimbabwe. The country has a very low standard of living, which is also reflected in its healthcare and education system. Many kids drop out of school at an early age due to financial instability in their families. There has been a low life expectancy at birth, and many children do not get to see the light of day. The main source of income in Zimbabwe is tobacco production.If you like our article, be sure to check out these fun facts articles about Zimbabwe’s culture and Zimbabwe’s education.Fun Facts about Zimbabwe’s EconomyZimbabwe’s economy mainly depends on service sectors. Mining and agriculture are the main points of exports. About 60% of the population works in the tertiary sector. After the economy went on a downturn from the years 1998-2008, Zimbabwe has somewhat recovered and is becoming one of the fastest-growing economies in the world. It is starting to show growth at a rate of 12% every year. In 2016, it once again slowed down its growth at 0.7%.Zimbabwe has an agriculture-based economy. Agriculture is one of the main commodities that the country exports. It also has a mixed economy. A mixed economy means that the companies are owned by both the private sector and government officials. Zimbabwe is a member of the South African Development Community (SADC) and Common Market for Eastern and Southern African Development (SADC). Lack of foreign investments, corruption, an underperforming banking system, and a high unemployment rate have all taken their toll on the country. The economic sanctions placed by the United States of America, the European Union, and the IMF affected Zimbabwe’s economy. Their asset fund was also frozen by the reserve bank. There was no trade or investment in the commodities of the country.Foreign currency, like the US dollar and South African rand, were used in the economic crisis. The government spending money in reserve banks caused a fall in the economy. The money in the world bank amounted to nothing, and the Zimbabwean dollar fell, and the exchange rate became higher. The economic mismanagement of the country led to the removal of investment from foreign countries. There was a decline in trade and economic growth. The domestic demand for basic commodities increased, and the Zimbabwean dollar fell further. Even transport equipment was costlier. There was no real growth, and human rights were compromised for a year. The business environment and economic activity were hit by bad management. The international financial institutions and the world bank refused to loan them money.Facts About Zimbabwe’s IndustriesZimbabwe focuses primarily on farming and mining as its staple industries.There are many natural resources found in Zimbabwe. Coal, gold, platinum, copper, iron ore, and nickel are mined by the people here and exported to different countries. Metallurgical grade chromite has been found in reserves in the land of Zimbabwe. African countries are known to have the best natural deposits. Zimbabwe is also one of them. There have been reports of diamond mines in Zimbabwe. In 2006, the richest known diamond mine in the world was found in Zimbabwe. They are called the Marange diamond fields. Zimbabwe’s mineral export was up to $1.8 billion in January 2013. The country became the third-largest producer of platinum and the sixth-largest producer of lithium in the year 2019. Around 23.9 tons of gold were reportedly produced in the year 2017.The Metallon Corporation, headed by Mzi Khumalo, is Zimbabwe’s largest gold miner, as of the year October 2014. Though there is much local ownership of diamond mines, there have not been many reports about export or production. The share market prices of companies dropped when the government announced local ownership of mining companies. There have been issues with corruption in the diamond mining industry. The number of diamonds produced is ambiguous, and there is a constant fear of the diamonds getting stolen. What could have been a booming and important factor in improving Zimbabwe’s economy became an object of greed by wealthy politicians and criminals.Agriculture is also one of the main parts of the economy in Zimbabwe. Zimbabwe’s farming industry s divided into subsistence farming and commercial farming. Subsistence farming includes the farming of crops, such as maize or wheat. Commercial farming includes farming crops such as tobacco, cotton, peanuts, and coffee. It is the sixth-largest producer of tobacco in the world. There were a few hiccups by the Zimbabwe government on the reallocation of land in 2008, when the farming industry decreased its production in the hands of new landowners. After 2008, with the help of American and Chinese governments who provided loans and contracts for tobacco farming, the industry boomed to its peak, making it the sixth largest producer in the world.Facts About Zimbabwe’s Economic CrisisThe hyperinflation of Zimbabwe was one of the worst that the world saw. The reduction in funds and investment led to hyperinflation in the country.Many factors contributed to hyperinflation. First, it was the national debt by the Zimbabwe government. They had taken loans from various countries and were unable to pay them back. In response to this, the government started printing notes, which further decreased the value of the currency. In addition to that, there was no income generated from the export of staple industries in Zimbabwe, due to the relocation of land and lack of funds to grow new crops. On top of that, there was political corruption which further weakened the economy. It was reported that, in 2008, the inflation rate went as high as 79.6 billion%. With such inflation rates, the government stopped printing its notes, as they had no value. Currencies from other countries were being used by Zimbabwe in April 2019. Zimbabwe officially switched to using the US dollar as its currency in the year 2015. Again in 2019, the government tried to introduce the Zimbabwe dollar, but the inflation rate became higher. It went from a 175% increase to a 500% increase by the end of 2020. After the end of the covid-19 crisis, inflation has again reached 737%.Zimbabwe’s government is taking an interest in the education of the youth of the country. Universities are being built in order to improve the country’s economy by excelling in other sectors. The University of Zimbabwe has been in the top 10 in Africa. Health care is also being improved. They have been slowly and steadily regaining back power in stabilizing the economy. Foreign countries are again seeing the Zimbabwe agriculture industry as an investment. Chinese and American companies have started giving out loans and have started to fund the agricultural sector.Facts About Zimbabwe’s IncomeThe crisis of 2008 had a deep impact on the income of Zimbabwe.Dealing with a decade-long crisis, Zimbabwe had become one of the lowest income countries in the world. The average household income in 2020 was $33, and it raised to more than double in the following year of 2021, at $75. Half of Zimbabwe’s population lives in poverty. Nearly 74% of the population does not have a daily wage of $10 and suffers from extreme malnutrition.Due to the economic crisis in 2008, Zimbabwe’s currency has become worthless. As politicians started printing money, the value of money decreased. Zimbabwe can improve its economy by starting to trade diamonds, which are one of the minerals found on their land. Stringent measures should be taken to stop corruption at all levels of society and take a stand against the smuggling of diamonds. The funds received by the government should be kept in check; only then can true unemployment and the black market be kept under check.Here at Kidadl, we have carefully created lots of interesting family-friendly facts for everyone to enjoy! If you liked our Zimbabwe economy facts, then why not take a look at our Zimbabwe history facts or Zimbabwe facts?
Zimbabwe was one of the countries that were hit hard by the worldwide recession in the year 2008.
