This is the second most inflation crisis that has ever happened in the world.

1. Zimbabwe’s
Economic
Crisis
HYPERINFLATION

2. PRESENTOR
Leader: Kent Cedrick Braganza
1st
Member: Alexian Celada
2nd
Member: Jaythan Brix Gementiza

3. BACKGROUND

4. Zimbabwe
• A country in Central
Africa
• One of the world’s
most beautiful
scenery
• Victoria Falls which
is the tallest
waterfall in the world

5. Zimbabwe
• A country in Central
Africa
• One of the world’s
most beautiful
scenery
• Victoria Falls which
is the tallest
waterfall in the world

6. Zimbabwe
• A country in Central
Africa
• One of the world’s
most beautiful
scenery
• Victoria Falls which
is the tallest
waterfall in the
world

7. DISCUSSION

8. Cause & Effect
Zimbabwe's Hyperinflation has
mainly been caused by poor
monetary policies and failure of
fiscal policies to control the
budget deficit.
• local currency falls
• unemployment rate of
over 80%

9. Impacts to the Business

10. Examples
Many companies
have been forced to
close shops

11. schools are being
forced to charge
their fees either in
US dollars or in fuel
coupons

12. turned the
domestic economy
into a barter
economy

13. Problems

14. Opportunistic crime, such as pickpocketing, theft, and smashing of
car window with intent to steal, is common. Violent crime, such as
assault, carjacking, and home invasion, also occurs.

15. Zimbabwe's national debt is projected to continue to increase
between 2022 and 2027 by a total of 169.2 billion U.S. dollars.
(+408.01 percent)

16. Crisis

17. Crisis
- From 1999 to 2009, the country
experienced a sharp drop in food
production and in all other sectors.
- Unemployment rose to 90%.

18. SWOT Analysis
Strength
Weakness
Opportunity
Threats

19. Strengths
• Abundant
mining resources
(platinum, gold,
diamonds,
nickel)

20. Strengths
• Agricultural
wealth(tobacco,
cotton)

21. Weaknesses
• lack in source of
electricity

22. Weaknesses
• poor institutions

23. Opportunity
• Source of
agricultural
needs

24. Threats
• Official inflation
almost doubles
as economic
threats remain

25. Decision Making
In 2007, Zimbabwe’s government declared inflation illegal. Anyone who raised the
prices of goods and services was subject to arrest.
In 2008, Zimbabwean government ceased printing Zimbabwean dollars altogether.

26. CONCLUSION

27. Alternative
Former President Mugabe finally decide and allow people to use foreign currency such
as US Dollars, Euro, and South African Rand to make transactions and pay taxes.

28. Recommendation
• Dump damaging policies and stamp out corruption
• Don’t print new money to pay obligations

29. Restructuring
• Deep political changes
• Implement government reforms

30. Plan
• Establishing a strong money anchor to reduce inflation and inflation expectations
• Deregulating prices and imposing a hard budget constraint on public enterprises

31. Final Decision
A new weekly auction of foreign currency was set up in late June 2020 by the
Reserve Bank of Zimbabwe.

32. THANK YOU!