Is Zimbabwe’s Economy On Track?

Goods at hiked prices at Harare, Zimbabwe |GETTY IMAGES

By Reality Check teamBBC News

Zimbabwe has not had its own independent currency since hyperinflation wiped it out a decade ago.

Instead, it has relied on the US dollar along with a local money system pegged to the dollar.

The economy is no longer in its extreme inflationary spiral, but the country has continued to suffer from severe shortages of food, medicine, and fuel.

Last month, the Zimbabwean authorities reintroduced the Zimbabwean dollar as the country’s sole legal tender.

Foreign Minister Sibusiso Moyo says this move has stabilized the economy.

But is he right? Reality Check looks at the country’s key economic indicators before and after the currency was reintroduced.

Fears of a return to hyperinflation

There has been an understandable concern that the return of the Zimbabwe dollar would lead to a return to the chaotic hyperinflation which destroyed savings and made wages worthless.

The most recent figures suggest inflation has risen sharply over the last year. In May it was 98% and by June, annual inflation stood at 176%.

This is nowhere near the spiraling inflation levels of a decade ago, but the trend has not been encouraging. Read more…

LEAVE A REPLY

Please enter your comment!
Please enter your name here