Zimbabwe in numbers: Part 2

Zimbabwe’s Gross Domestic Product (GDP) has been on a decrease since the turn of the 21^st century. As can been seen from the graph, the ratio of exports to GDP has a downward trend after a peak just before the year 2000, implying that both exports and GDP have been declining. To make matters worse, exports have been decreasing at a much faster pace than the decrease in GDP, hence a much steeper downward trend. Starting in 1975, the trade balance (i.e. exports minus imports) has at times been positive suggesting that the country has been exporting much more than it has been buying from other countries. However, after the early 2000s, the trade balance has continuously been negative and reaching as low as -30% of GDP, an indication that the country has been living beyond its means.

The major exports for Zimbabwe are all from the primary industry, mostly mining and agriculture.  Zimbabwe’s top 10 exports and listed in their decreasing order are Gems, precious metals, Tobacco and tobacco scrap, Ores, slag, ash, Iron, steel, Sugar and sugar confectionery, Salt and sulphur, stone, cement, Nickel, Raw hides, skins not fur-skins, leather, Cotton and Wood. Recent policies on the mining sector, for example, the 51% local ownership and the land redistribution strategy have contributed to a dramatic decrease in this export base.

On the other hand, given a decline in output in manufacturing and primary industries, imports have surged. The major imports for Zimbabwe are Mineral fuels including oil, Cereals, Machinery including computers, Vehicles, Electrical Equipment, Pharmaceuticals, Plastics/plastic articles, Animal/Vegetable fats, oils and waxes, Iron and steel and Other chemicals. 

The graph above shows that, despite the decrease in economic activities in Zimbabwe over the last few decades, foreign direct investment as a proportion of GDP has been on an upward trend reaching its highest in 2015. 

There has been a huge outcry over the decrease in foreign aid to Zimbabwe. A country should be able to generate its resources rather than depend on other countries to fund its recurrent expenditure as this brings with it a lot of problems (which will shall discuss in another article).  From 1965 to Zimbabwe’s independence in 1980, Zimbabwe’s international aid flows were near zero and increased through the early 1990s before declining for a decade until the early 2000s. However, it increased drastically peaking in 2012. The observed increase signifies a 38% increase from the previous peak of 1992.

Website link for Tutsirai Sakutukwa: https://sites.google.com/site/tutsisakutukwa/home

Website link for Marshal Makate: https://econmakfaraim.wordpress.com/