Economy
At present, agriculture is the mainstay of the Zimbabwe economy for over 70 percent of the population. Manufacturing accounts for about 25 percent of the gross national product. Unfortunately, economic decline began in the mid-1980s, when foreign demand for mandy minerals dropped. This and several droughts, along with adjustment policies have had a disproportionate impact on the poor in particular.
Until 1992, the country was self-sufficient in grain, and a massive increase in maize production by smallholders was a great success story. However, of recent years, annual grain production has not always met demand – due in the main to a decline in producer prices and an increase in the population.
Major crops grown by smallholders on the high and middle veld plateau tend to be maize, sunflower, groundnuts, and cotton. In the Zambezi Valley more millet and sorghum are grown than maize, but only for subsistence as cotton is the only major cash crop. The west and the low veld are predominantly cattle-raising areas. To increase grain production for household consumption, the government and nongovernment organizations are encouraging farmers to grow more millet and sorghum.
During the period of the Unilateral Declaration of Independence, the country developed a strong manufacturing base, and it continues to manufacture products ranging from household items to steel and engineering products for the construction industry and commercial agricultural products such as textiles and foodstuffs. The diversified economy should provide a more solid base for sustained economic growth, but in recent years it has been underperforming.
The economy of Zimbabwe shrank significantly after 2000, which brought about widespread poverty and a 95% unemployment rate. Hyperinflation was a massive issue from about 2003 to April 2009, when the country suspended its own currency; 231 million percent peak hyperinflation was experienced in 2008, for example. However, a combination of the abandonment of the Zimbabwe dollar and a government of national unity in 2009 resulted in a period of positive economic growth for a while. By 2016 it was clear that the lack of production and greatly reduced investment had caused a massive shrinkage in the economy.
Tourism, particularly in Victoria Falls and nearby areas, continues to play a part in ensuring employment and a small flow of foreign currency.
Until 1992, the country was self-sufficient in grain, and a massive increase in maize production by smallholders was a great success story. However, of recent years, annual grain production has not always met demand – due in the main to a decline in producer prices and an increase in the population.
Major crops grown by smallholders on the high and middle veld plateau tend to be maize, sunflower, groundnuts, and cotton. In the Zambezi Valley more millet and sorghum are grown than maize, but only for subsistence as cotton is the only major cash crop. The west and the low veld are predominantly cattle-raising areas. To increase grain production for household consumption, the government and nongovernment organizations are encouraging farmers to grow more millet and sorghum.
During the period of the Unilateral Declaration of Independence, the country developed a strong manufacturing base, and it continues to manufacture products ranging from household items to steel and engineering products for the construction industry and commercial agricultural products such as textiles and foodstuffs. The diversified economy should provide a more solid base for sustained economic growth, but in recent years it has been underperforming.
The economy of Zimbabwe shrank significantly after 2000, which brought about widespread poverty and a 95% unemployment rate. Hyperinflation was a massive issue from about 2003 to April 2009, when the country suspended its own currency; 231 million percent peak hyperinflation was experienced in 2008, for example. However, a combination of the abandonment of the Zimbabwe dollar and a government of national unity in 2009 resulted in a period of positive economic growth for a while. By 2016 it was clear that the lack of production and greatly reduced investment had caused a massive shrinkage in the economy.
Tourism, particularly in Victoria Falls and nearby areas, continues to play a part in ensuring employment and a small flow of foreign currency.
