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Economy of Zimbabwe

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Zimbabwe  EconomyThe government of Zimbabwe faces a wide variety of difficult economic problems as it struggles to consolidate earlier moves to develop a market-oriented economy.

Its involvement in the war in the Democratic Republic of the Congo, for example, has already drained hundreds of millions of dollars from the economy.

Badly needed support from the IMF suffers delays in part because of the country's failure to meet budgetary goals. Inflation rose from an annual rate of 32% in 1998 to 59% in 1999 and 60% in 2000.

The economy is being steadily weakened by excessive government deficits and AIDS; Zimbabwe has the highest rate of infection in the world.

Per capita GDP, which is twice the average of the poorer sub- Saharan nations, will increase little if any in the near-term, and Zimbabwe will suffer continued frustrations in developing its agricultural and mineral resources.
 

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