Inflation hits record highs in Zimbabwe

Text by: RFI Follow

2 min

In Zimbabwe, annual inflation continues to soar. It climbed nearly 837% in July 2020, after reaching 737.3% in June, according to the National Statistics Agency. This southern African country has been mired in a severe economic crisis for twenty years.

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Galloping inflation, over-indebtedness, negative economic growth… All indicators of Zimbabwe's economy are red.

Zimbabweans can't take it anymore. Prices rose 35% in July and the country faces a shortage of basic necessities.

At the start of the year, the United Nations World Food Program estimated that more than half of the population is food insecure. Several years of drought worsened the situation also complicated by the Covid-19 pandemic.

Zimbabwe also suffers from a shortage of foreign exchange, large budget deficits and above all a very high debt estimated at 19 billion dollars. The country can no longer pay its arrears of payments and therefore cannot find foreign financing, essential to restart the economy.

The outlook for this year is alarmist. GDP is expected to drop another 7.4%, according to the IMF.

► To read also:Zimbabwe: reopening of the Stock Exchange after a month of stoppage

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• Zimbabwe
• Economy