What can be worse for an economy if its inflation increases at the pace of 2000% per month? I am not leaving you in a quandary, but Mugabe-led Zimbabwean economy is actually affected by the inflation, which has risen to 7,634.8%, the highest in the world till now.
An official report, issued by Zimbabwe Central Statistical Office authenticates the precariousness in the economy as compatriots forced to helplessly spend thousands on penny worth goods. Report showed that in July, inflation increased at 7,634.8%, and 7,251.1% in June, whereas in May inflation was hurting economy at 4,530%.
Economists are raising questions on the report and believe the real figure is much higher. Earlier analysts had predicted that the inflation would be surging to 6000% by the end of the year, but ineffective policies, black marketing and laxity in the law and regulations has placed the country’s economy on back foot.
The IMF is suspicious about the economy’s recovery from the inflation worries and predicted that inflation could reach 100,000% by the end of the year.
Government had imposed price controls policy to control the incessantly galloping inflation rates, but its ineffectiveness makes the situation suspect over efforts to curtail the inflation.
Country’s present problem is not economy mishmash generated, but it’s generated by their own faulty policies. To empower the indigenous people, government forcefully snatched land from the white people and distributed among the land less native. Government step resulted in huge sarcasm from the western countries and they imposed sanctions. After the ban, the country became aloof from the rest of the world and with the lack of necessary things the industrial sector hit hard, this directly hit the country’s employment and growth.
Via: Aljazeera
