Home >> Africa >> Zimbabwe  Email  Print Mugabenomics: Unprecedented Collapse and 3,700% Inflation Lawrence Ndlovu - 5/19/2007 Zimbabwe's annual inflation continued breaking new ground rising to 3,713.9 percent in April signaling that the country’s economic woes are far from over. Figures released by the Central Statistical Office (CSO) Thursday showed that surged a record 1 513.7 percentage points from 2 200.2 percent in March to 3 713.9 percent, the highest in the world, in a country where the majority lives below $1 a day.
On a month on month basis CSO said that prices had prices had risen by 100.7 percent last month after a 50.5 percent rise in March. It attributed the rise to an increase in prices of domestic power, food, fuel and commuter transport fares. The rise in prices would be a further blow to Zimbabweans where four out of five people are out of work.
Analysts predict that inflation would continue in its upward trend in the coming months. Analysts say Zimbabwe still has to import grain after a successive pathetic agricultural season since the takeover of land from commercial farmers began in 2000.
Zimbabwe has only managed to produce 500 000 tonnes of maize against a requirement of 2.4 million tones, a sign that the central bank will import grain.
In his monetary policy review presentation in January, central bank Governor Gideon Gono said that inflation would continue rising, but taper off to between 300-400 percent by the end of the year.
In its World Economic Outlook for April 2007, the International Monetary Fund said annual inflation was set to end the year at 2,879.5 percent, before hitting 6,470.8 percent in 2008.
The World Bank described Zimbabwe’s woes as unprecedented to a country that is not at war.
Zimbabwe, whose economy contracted 4.4% last year, is its seventh year of recession blamed on mismanagement by President Robert Mugabe’s government. The veteran leader denies the charge instead blaming the recession of successive droughts and “illegal” sanction.
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