Zimbabwe's economic crisis, the looming shadow of 2008

By Youngerson Matete The historical background of Zimbabwe's economic crisis The looming economic crisis has gotten many Zimbabweans extremely worried. This is largely because Zimbabwe has experienced economic and political crisis before. The crisis was underpinned by hyperinflation, lack of basic commodities in shops, prolonged water and electricity cuts, hunger, and outbreak of water borne diseases. Fifteen years ago, during a financial crisis, Zimbabwe recorded the second highest incidence of hyperinflation in history – the country’s inflation rate for November 2008 was a staggering 79,600,000,000% (essentially a daily inflation rate of 98%). Prices for basic commodities were increasing more than twice every day – goods and services would cost twice as much each following day. With the unemployment rate exceeding 70%, economic activities in Zimbabwe virtually shut down and turned the domestic economy into a barter trade economy. The cause of Zimbabwe’...