The economy of Zimbabwe is collapsing from economic mismanagement, resulting in 94% unemployment[3] and hyperinflation. The economy poorly transitioned in recent years, deteriorating from one of Africa's strongest economies to the world's worst. Inflation has surpassed that of all other nations at over 80 sextillion(1021)%[1] (although it is impossible to calculate an accurate value), with the next highest in Ethiopia at 41%[4]. It currently has the lowest GDP real growth rate in an independent country and 3rd in total (behind Palestinian territories.)
The country has reserves of metallurgical-grade chromite. Other commercial mineral deposits include coal, asbestos, copper, nickel, gold, platinum and iron ore. However, its ongoing political turmoil and one of the world's highest rate of inflation have greatly hampered its progress. Inflation, which many critics argue was caused by president Robert Mugabe's policies towards land reform, have led to internal upheaval and population displacement, and poverty.
Current economic conditions
Since 2000 president Mugabe has confiscated lands of white farmers, and this former net exporter of grain has now been plagued by hunger.
Government spending is 56.4% of GDP. It has partly been financed by printing money, which has led to hyperinflation. 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, firing a worker is difficult and the unemployment has risen to 94% (at the end of 2008; the figure was 80% in 2005).
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