Zimbabwe Two Steps Ahead in the Inflation League

According to 2021 TUIK data, inflation in Turkey, September for the first time since 2002 It went over 35%. With 36.08% consumer inflation, we moved up from 11th to 8th place in the inflation league.

According to the data in Trading Economics, which compiles the official economic data of the countries, Venezuela, Sudan, Lebanon, Syria, Suriname, Zimbabwe Turkey ranks 8th on the list, following Argentina and Argentina. Turkey is followed by Iran and Ethiopia.

We have previously reported what happened in Venezuela and Argentina, which are in the inflation league, and let’s take a look at what’s going on in Zimbabwe.

The country grappled with massive hyperinflation before inflation. In 2008 prices were doubling every 25 hours.

Hyperinflation is hyperinflation in which price increases quickly get out of control. Most central banks for a country 2% to 3% It targets an annual inflation rate between During periods of hyperinflation, a country experiences an inflation rate of 50% or more per month.

In Zimbabwe, the rise in prices accelerated in the 2000s and by November 2008 inflation 79,000,000,000 (billion) percent per month had grown to such an incredible rate.

Shops were changing prices several times a day.

The collapse of the economy has caused people to suffer from water and electricity cuts, banks, gas stations and in front of the markets due to the great food shortage. with queues forced to live.

People protesting the price increase in fuel can be killed by the police.

Family of a 22-year-old teenager killed by police while protesting the price increase in fuel

Security forces in protests against the dramatic rise in prices killed at least a dozen people. Moreover, the Zimbabwe government defended the security forces’ response, giving opposition and demonstrators a terrorist said.

In 2015, 250,000,000,000,000 (trillion) Zimbabwe dollars equaled 1 US dollar.

Some of the Zimbabweans began to move to South Africa or Botswana to buy their basic needs with US dollars. The country’s economy now practically revolved around the South African rand and the US dollar.

In response to this situation, the Central Bank of Zimbabwe Officially abandoning the use of Zimbabwean currency started to make transactions in US dollars and South African rand. Thus, hyperinflation has decreased compared to the past, but is still in the 6th place.

The Zimbabwe dollar, which was put out of circulation because it became worthless, was put back into circulation in 2019 after 10 years. That’s why there are concerns that hyperinflation will return in the country.

How did Zimbabwe get into this situation?

Long before Zimbabwe’s period of high inflation began in 2007, the signs were already clear that the country’s economic system was in trouble. In the aftermath of controversial land reform, which included the confiscation of property by white landowners in the 1990s sharp decline in agricultural production it happened.

Implementation of the land reform initiative was poor and agricultural production suffered greatly for several years. Food supplies were low and this has caused prices to rise even higher.

Towards the end of 1997, the government’s extravagance started to cause problems for the economy. In 2000, things got worse. Apart from these, the financial bill of Zimbabwe’s involvement in the war in Congo in 1998 and the sanctions imposed on Robert Mugabe’s government by the EU and the USA in 2002 also adversely affected the economy.

Although Turkey’s annual inflation, which has risen two steps below this country, is 36.08% according to the data announced by TUIK, there are different opinions.

According to the data of the Inflation Research Group (ENAG), composed of academics and economists, the 12-month increase in inflation 82.81% recorded as.

We are the first in the world in inflation among countries with a population of 50 million+. At least, TURKSTAT and ENAG agree on this issue.

Sources: 1, 2, 3, 4, 5, 6