Zimbabwe is in the midst of a transition. After years of decline, economic stability is emerging. The Government of National Unity (GNU), put in place in February 2009, has brought a renewed optimism and a clear move toward an improved economic policy framework. Accordingly, now is a good time to take account of where the nation’s business environment stands and what reforms are needed to enable the business community to reinvigorate the economy and engage competitively in the global market again.
The country has a long way to go. Zimbabwe’s GDP shrank by as much as 50% in the past six years, according to some estimates, and the official inflation rate reached as high as 231 million percent in 2008. As the government’s Short Term Economic Recovery Plan indicates, Zimbabwe’s recovery is well beyond the parameters of the GNU’s resources, and the government now hopes for significant support from beyond its borders. While donors are interested in an opportunity to reengage and assist in rebuilding this country, many remain cautious to do so on economic issues—a legacy of the lack of respect for rule of law and damaging fiscal policies by the government in recent years. However, some donors have begun to take a keen interest in this area again since the establishment of the GNU, but despite significant policy improvements, recent advances remain fragile and incomplete.
| Key Development Data & Statistics |
Year |
Latest Data |
| GDP (current US$) (billions) |
2005 |
3.4 |
| GNI per capita, Atlas method (current US$) |
2005 |
360 |
| Population, total (millions) |
2008 |
12.5 |
| Population growth (annual %) |
2008 |
0.1 |
| Exports (current US$) (billions) |
2009 |
1.09 |
| Imports (current US$) (billions) |
2009 |
2.03 |
Top Exports: platinum, cotton, tobacco
|
Top Imports: food stuffs, machinery and equipment, steel
|
|
|
Source: World Bank Group 2009, CIA World Factbook 2009
For additional economic indicators, please visit the World Bank's "
Private Sector at a Glance."
