Economy of Zimbabwe

The economy of Zimbabwe shrank significantly after 2000, resulting in a desperate situation for the country – widespread poverty and an 95% unemployment rate. Zimbabwe's participation from 1998 to 2002 in the war in the Democratic Republic of the Congo set the stage for this deterioration by draining the country of hundreds of millions of dollars. Hyperinflation in Zimbabwe was a major problem from about 2003 to April 2009, when the country suspended its own currency. Zimbabwe faced 231 million percent peak hyperinflation in 2008.

The country has reserves of metallurgical-grade chromite. Other commercial mineral deposits include coal, asbestos, copper, nickel, gold, platinum and iron ore.

Since 2000, Zimbabwe has seized and forcibly redistributed most of the country's white owned commercial farms. The new occupants, which included black only citizens and several prominent members of the ruling ZANU-PF administration, were usually inept, inexperienced, or uninterested in farming – thereby failing to retain the labour-intensive, highly efficient management of previous landowners. Short term gains were achieved by selling the land or equipment. The contemporary lack of agricultural expertise has triggered severe export losses and negatively affected market confidence. Idle land is now being utilised by local peasants practising meagre subsistence farming. Production of staple foodstuffs, such as maize, has recovered accordingly – unlike typical export crops including tobacco and coffee. Zimbabwe has also sustained the 30th occurrence of recorded hyperinflation in world history.

Government spending is 97.8% of GDP. State enterprises are strongly subsidized, taxes and tariffs are high. State regulation is costly to companies, starting or closing a business is slow and costly.Labor market is highly regulated, hiring a worker is cumbersome and firing a worker is difficult. By 2008 unemployment had risen to 94%.

Since 2000, Zimbabwe has seized and forcibly redistributed most of the country's white owned commercial farms. The new occupants, which included black only citizens and several prominent members of the ruling ZANU-PF administration, were usually inept, inexperienced, or uninterested in farming – thereby failing to retain the labour-intensive, highly efficient management of previous landowners. Short term gains were achieved by selling the land or equipment. The contemporary lack of agricultural expertise has triggered severe export losses and negatively affected market confidence. Idle land is now being utilised by local peasants practising meagre subsistence farming. Production of staple foodstuffs, such as maize, has recovered accordingly – unlike typical export crops including tobacco and coffee.Zimbabwe has also sustained the 30th occurrence of recorded hyperinflation in world history.

Government spending is 97.8% of GDP. State enterprises are strongly subsidized, taxes and tariffs are high. State regulation is costly to companies, starting or closing a business is slow and costly. Labor market is highly regulated, hiring a worker is cumbersome and firing a worker is difficult. By 2008 unemployment had risen to 94%.