HYPER INFLATION IN

ZIMBABWE

Presented by :
Pankaj lodhi
 HYPERINFLATION ?
In economics hyper inflation is inflation which is very high
Or that is “out of control” a condition in which prices increases
Rapidly as a currency looses its value.
 CAUSES OF HYPERINFLATION IN
ZIMBABWE :
Hyperinflation in Zimbabwe began in early 2000 shortly after conflict over white
Owned farm land.
because eviction of more than 4000 white farmers in the contro-
-versial land redistribution of 2000.

Its repudiation of debt to the international monetary fund.

Zimbabwe's involvement from 1998 to 2002 in the war in democratic republic of

Congo de rained million of dollar from the economy.

Downward spiral of economy because of mismanagement and corruption of the

Mugabe regime.

Excessive circulation of money in the country in order to control the inflation, which
In turn leads to hyperinflation.
 GROWTH RATE IN
ZIMBABWE

Zimbabwe got freedom in 1980 since than till present time

Robert Mugabe was the president of Zimbabwe.
economic growth in:-
80’s – ( 5 ) %
90’s – (4.3) %
2000 – (-5 ) %
2001 – (-8 ) %
2002 – (-12 )%
2003 - (-18) %
2004 - (-7 ) %
2005 - (-7 ) %
2006 - (-6 ) %
2007 - (-9 ) %
2008 - (-11) % and later on the condition of
Zimbabwe became worse to adverse.
 RISE OF INFLATION IN
ZIMBABWE :
On 17th nov 2008 johns Hopkins university prof. Steve H. Hanke estimated the
Zimbabwe's Annual inflation rates as 89.7sextillion(1021). Monthly inflation at 79.6 billion%

Inflation year Issue of note Year/month 1$=ZWD $

112.1% 2001 Z$ 20000 2007

198.93% 2002 Z$ 10000000 2008(jan) 4 us$
598.75% 2003 Z$ 5000000 2008(april) 1.20 us$
132.75% 2004 Z$ 100 2008
(million) (may)
584.84% 2005 Z$ 250 2008
(million) (may)

1281.11% 2006 Z$ 500 10 days 2 us$

(million) later
66212.3% 2007 Z$ 100 2008
(billion) (19th July)
231150888.87 2008 Z$ 20T. 2009
100 TRILLION ZW $
 CONSEQUENCES OF HYPERINFLATION IN
ZIMBABWE

 once 1 zw $ = i.59 us $ but latter on in 2008 it came to

500 billion zw $ = 2 us $

Prices in Zimbabwe in November 2008 rise in every 24.7 hours

This is the second worst inflation in history after Hungary in 1946

Major exporter of tobacco and maze became net importer.

80% of population is unemployed

life expectancy in adult in 1990 – 60 and as of now it is 37.

 Cont.
60% of Zimbabwe's wild life died since 2000.

Loss of wild life leads to deforestation so loss of

tourism industry.

African nations as well as united nations is doing little

regarding Zimbabwe's present condition.

FDI is almost nil in Zimbabwe which is the major

indicator in growth of any nation.

Prices in Zimbabwe raised to 64 times from 7th nov to

14th i.e. in 8 days.
 MEASURES TAKEN TO CONTROL INFLATION

More over in starting 2009 on 16th January govt. planned to

Issue notes of greater denomination such as 10T ,20T, 50T,
and 100T.zw $.

Zimbabwe dollar was suspended on 12 April 2009

And use of more stable currency was allowed such as us$,
African rand euro .

On July 30th 2008 the governor RBZ announced that 10 zeros
will be removed from Zimbabwean dollar. And zw $ 10 billion
Will become 1 dollar after redenomination.
 PRESENT SITUATION IN
ZIMBABWE :
At the time of independence there were about 1% population of
Whites holds 70 % of countries commercial capital .
In 1975 there were around 296000 whites where as in 1999 it w
around 120000 and in 2002 the number was less than 50000

At present black people make 98% of population.

Government spending is 56.4% of GDP.

Because of use of other stable currencies the rate of inflation

has reached almost to 0-3 %
But the consequences of this was that
even the street vendors Are not accepting zw $.
RECOMMENDATION GIVEN TO CURB THE SITUATION IN
ZIMBABWE

Thing in Zimbabwe can’t be changed instantly it will take time

The main problem country is facing is of human resource

no economy in the world can grow if it is not having skilled
Human resource.

Agricultural land at present is being holed mostly by those

who are not of farming background.

In 1990 manufacturing contribute around 23% of GDP but at

present it stands no where.

Mining and other resources are also needed to be explored to

develop the economy.