According to our econometric models, Zimbabwe’s GDP per capita will trend around 1000.00 USD in 2022 and 965.00 USD in 2023 in the long run. The GDP per capita is calculated by dividing the total population by the country’s gross domestic product, adjusted for inflation.
What will Zimbabwe’s GDP be in 2021?
According to Trading Economics global macro models and analysts, Zimbabwe’s GDP is predicted to reach 22.00 USD billion by the end of 2021. According to our econometric models, the Zimbabwe GDP is expected to trend at 23.50 USD billion in 2022.
Which African country has the highest per capita income?
- Seychelles: With a GDP per capita of $9,670, this island nation now boasts the highest in Africa.
- Mauritius: Another island African country, Mauritius, takes the number two spot. The GDP per capita in this country is $9,640.
- Gabon: With a GDP per capita of $8,600, this oil-rich country is ranked third.
- South Africa is one of Africa’s most developed economies. It also has a $5,440 GDP per capita.
- Egypt: With a GDP per capita of $3,830, Egypt is one of just two North African countries to make the top ten list.
- Eswatini: Also known as Swaziland, this country in Southern Africa has a GDP per capita of $3,710.
What factors influence Zimbabwe’s GDP?
From 2010 to 2020, this statistic depicts the share of economic sectors in Zimbabwe’s gross domestic product (GDP). Agriculture provided 7.61 percent of Zimbabwe’s gross domestic product in 2020, while industry contributed 35.82 percent and the services sector contributed 49.9%.
Zimbabwe has what kind of economy?
Botswana, Mozambique, South Africa, and Zambia are all bordering Zimbabwe, which is a landlocked country in Southern Africa. Zimbabwe’s terrain is dominated by high plateaus and mountains towards the east. The government is a parliamentary democracy, with the president as the chief of state and the prime minister as the head of government. Zimbabwe has a mixed economy in which individual freedom is limited but the economy is tightly regulated by the government. Zimbabwe is a member of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA) (SADC).
Is Zimbabwe’s economy doing well?
Zimbabwe’s economy is ranked 173rd in the 2022 Index for economic freedom, with a score of 33.1. Zimbabwe is placed 46th out of 47 countries in Sub-Saharan Africa, with a score that is lower than the regional and global averages.
Why is Zimbabwe so impoverished?
Zimbabwe was once a burgeoning African economy, propelled forward by its mining and agricultural industries. Zimbabweans, on the other hand, are currently dealing with conflict, internal corruption, hyperinflation, and industrial mismanagement. A thorough examination of the country sheds light on the country’s poor situation.
Facts About Poverty in Zimbabwe
- As of 2020, poverty affects 76.3 percent of Zimbabwean youngsters in rural areas.
- Approximately 74% of the population lives on less than $5.50 per day, while the average monthly pay is $253.
- Half of Zimbabwe’s 13.5 million people are food insecure, with 3.5 million children suffering from chronic hunger.
- As of 2016, over 1.3 million Zimbabweans were infected with HIV. However, thanks to advancements in HIV prevention, treatment, and support services, the incidence of HIV cases has been falling since 1997.
- Period poverty affects over 60% of rural Zimbabwean women, who lack access to menstruation products and knowledge. Period poverty is projected to cause girls to miss 20% of their schooling.
- As of 2018, the average life expectancy for a Zimbabwean was only 61 years due to starvation and the HIV/AIDS catastrophe. However, since 2002, when it was only 44 years, life expectancy has significantly increased.
- Due to the effects of the drought, two million Zimbabweans were without safe drinking water in 2019.
- Education receives a major amount of the national budget from the government. As a result, Zimbabwe has one of the highest adult literacy rates in Africa, at 89 percent.
Why Poverty is Rampant in Zimbabwe
Zimbabwe’s economy has been mostly reliant on its mining and agricultural industries since its independence in 1980. The Great Dyke, the world’s second-largest platinum deposit, is located in Zimbabwe, giving the country’s mining industry enormous potential. Furthermore, Zimbabwe has around 4,000 gold resources.
The country’s mining sector, on the other hand, is inefficient, with gold output dropping 30% in the first quarter of 2021. While illegal gold mining is bad for the business, Zimbabwe’s loose mining licensing regulations allow foreign companies to mine minerals for years at a low cost, resulting in a lack of incentive to increase mineral production.
Furthermore, the Zimbabwean government’s choice to back the Democratic Republic of the Congo in the Second Congo War depleted the country’s bank reserves, alienated allies, and resulted in sanctions from the United States and the European Union. Zimbabwe’s economy crumbled as a result. As a result, the government began printing additional money, resulting in widespread Zimbabwean dollar hyperinflation.
NGOs Combating Poverty in Zimbabwe
Zimbabwe’s situation is improving. Higher agricultural production, increased energy production, and the restoration of industry and construction activity could boost Zimbabwe’s GDP by approximately 3% in 2021. Unemployment rates are expected to continue to fall. The increase is mostly due to intensified immunization efforts, with China providing the country with two million doses of COVID-19 vaccine.
In addition, a number of non-governmental organizations (NGOs) are battling poverty in Zimbabwe. Talia’s Women’s Network, for example, aims to alleviate period poverty in the country’s rural areas by assisting 250 girls in obtaining menstruation products. The project also aims to educate the girls with knowledge of the menstrual cycle as well as access to resources to help them avoid early marriage, gender-based violence, and unwanted pregnancies.
In Zimbabwe, another charity, Action Change, provides lunch to 400 elementary school kids. It also attempts to break the cycle of poverty by supplying educational materials. Zimbabwe spends 93 percent of the projected $905 million it sets up for education on employment costs, leaving only around 7% for classroom materials. Action Change gives textbooks and other resources to schools.
The American Foundation for Children with AIDS provides livestock and food self-sufficiency training to 3,000 AIDS-affected children and their guardians. In the meanwhile, the group provides tools and training to combat food insecurity and guarantee that children have a healthy diet.
Stimulating the Agriculture Industry
In order to alleviate poverty in Zimbabwe, the country’s agricultural industry must be stimulated. The existence of about 66 percent of Zimbabweans is dependent on their tiny farms. However, there is a significant disparity in water access between the numerous small farms and the few major commercial farms in the country. Small farmers’ production and income would increase if they had equal access to water. In Zimbabwe, reviving the agricultural sector will boost economic growth and alleviate poverty.
Although there are still obstacles to overcome before the country can genuinely abolish poverty, it has enormous potential to become an African superpower.
What causes Zimbabwe’s poverty?
Harare, Zimbabwe, July 23, 2021- Due to the combined effects of rising food prices, economic contraction caused by the COVID-19 epidemic, and bad harvests, nearly half of Zimbabwe’s population lived in abject poverty in 2020. The Zimbabwe National Statistics Agency (ZIMSTAT), in collaboration with the World Bank and UNICEF, performed the 2020 Rapid Poverty Income Consumption and Expenditure Survey (PICES) Telephonic Survey.
“ZIMSTAT, in collaboration with the World Bank and UNICEF, devised a high-frequency telephone survey of Zimbabwean homes to assess the socioeconomic impact of COVID-19. “From the 2019 Mini PICES, a sample of 1 800 households was taken,” stated Mr Taguma Mahonde, Director General of ZIMSTAT.
“The Zimbabwe Reconstruction Fund (ZIMREF) and UNICEF are jointly funding the Rapid PICES Monitoring Telephone Survey, which is being implemented by ZIMSTAT with technical assistance from the World Bank and UNICEF,” he stated.
The Rapid PICES project, which began in June 2020 and will end in November 2021, will be finished. The second phase of Rapid PICES took place in August and September 2020, while the third round took place in mid-December and mid-March 2021.
As indicated by the successful collection of data from 1774 homes in the first round, 1664 households in the second round, and 1235 families in the third round, ZIMSTAT has made great progress. The data gathering method for this survey is computer assisted personal interviews (CAPI). In May 2021, ZIMSTAT completed cycle four, and in June 2021, round five. The survey is tailored to collect data on specific themes in each round.
“Communities are still suffering as a result of the pandemic’s socioeconomic repercussions. The Rapid-PICES exercise collects policy-relevant data that can be used to develop measures to help communities cope with the pandemic’s effects. While employment has increased from 51% in July 2020 to 57 percent in early 2021, the recovery has only been partial, since employment levels have not yet recovered to pre-pandemic levels, adding to the country’s growing poverty,” said Ms Mukami Kariuki, World Bank Country Manager for Zimbabwe.
The Third Round Survey found that 63 percent of the population would definitely or likely get the vaccine if it was free; food insecurity remained high, with 61 percent of the total population and 71 percent of the rural population experiencing severe or moderate food insecurity; and 61 percent of agricultural households participated in “Pfumvudza,” a government-led agricultural program for small-scale farmers.
In the third phase of the poll, a somewhat lower percentage of households that needed medical treatment (84 percent) were able to get it (compared to 86 percent in the second round). The main reason for not being able to receive medical treatment was a lack of funds. In the third phase of the survey, 91% of school-aged children said they were going to school. The COVID-19 pandemic, on the other hand, continued to play a detrimental influence in keeping kids out of school.
“The pandemic has continued to hit children the hardest. Only 40% of children participated in some form of remote learning, according to the results of this round of the survey, while access to critical health interventions has decreased. “I call on all stakeholders to work together to assist the country’s protection programs,” said UNICEF Representative Dr Tajudeen Oyewale.
The PICES is a significant survey that offers critical data that is utilized by the government to inform national policy for social welfare programs, poverty mapping, and examining income gaps among socio-economic groups, among other things.
Why is Gabon so prosperous?
Gabon, a country in central Africa, has a wealth of natural resources. It shares borders with Cameroon, Equatorial Guinea, and the Republic of Congo on the Atlantic Ocean. With a population of 2 million people in 2017 and woods covering 85 percent of its land, it is a sparsely inhabited country.
Gabon, however, has one of Africa’s highest urbanization rates, with more than four out of five Gabonese residents living in cities.
Libreville, the country’s capital, and Port Gentil, the country’s economic powerhouse, are home to 59 percent of the population. According to the 2012 Second Demographic and Health Survey, one in every two Gabonese people is under the age of 20, and the fertility rate in urban regions is four children per woman, compared to six in rural areas.
The Gabonese Democratic Party (Parti dmocratique gabonais PDG) is the most powerful political force in the country. Omar Bongo was president for 41 years, from 1968 to 2009, and his son, Ali Bongo Ondimba, was elected president in August 2009, despite the country’s social catastrophe.
The opposition boycotted parliamentary elections in 2011, but returned in December 2013 to run in municipal and departmental elections, as well as the Senate election in December 2014. Nonetheless, the ruling party won all of these elections. Ali Bongo, the current president, was re-elected on August 31, 2016, in disputed elections with a low voter turnout of 59 percent.
In October 2018, legislative and municipal elections were conducted. Despite losing 15 seats, the ruling party retained its two-thirds majority in the National Assembly, capturing 98 of the 143 seats. The elections came after a constitutional court judgement in April 2018 that dissolved parliament (due to election delays) and forced the government’s resignation in May. A caretaker administration implemented measures (which were codified in an updated 2008 Budget Law) to address Gabon’s deteriorating macroeconomic performance and bloated pay bill.
Several soldiers attempted to seize power on January 7, 2019, taking advantage of the President of the Republic’s protracted absence in Morocco for medical treatment. The ringleaders of this attempted coup were apprehended.
A new administration was sworn in in January 2019, and it was restructured by presidential decree on January 30, June 10, and December 2019.
Gabon is a country with a high standard of living. It is Africa’s fifth largest oil producer, with substantial economic growth over the last decade fueled by oil and manganese output. Over the last five years, the oil sector has accounted for 80 percent of exports, 45 percent of GDP, and 60 percent of fiscal revenue on average. The Gabonese administration, however, has opted to diversify its economy as the country’s oil reserves diminish.
Gabon’s fiscal situation deteriorated in 2015, with the government posting its first budget deficit since 1998. Despite the government’s efforts to cut spending and counteract the drop in oil revenues, Gabon’s economy has slowed, with growth forecasted at 0.8 percent in 2018 compared to 0.5 percent in 2017.
This tendency is due to the limited expansion of the secondary and tertiary sectors, which has been hampered by the reduction in government spending. Higher prices for crude oil, manganese, and rubber, three of the country’s exports, led to the primary sector’s expansion. Non-extractive sectors including agribusiness, as well as enhanced transportation and communication networks, could boost growth to 2.9 percent in 2019.
The COVID-19 situation, as well as the further decrease in oil prices, will stymie this anticipated expansion.
A substantial fiscal deficit will result from a sharp reduction in domestic revenue mobilization, exports, and foreign direct investment.
Gabon’s social spending must likewise be increased. According to a 2013 McKinsey report, over 30% of the population is vulnerable, with monthly salaries below the guaranteed minimum wage of CFAF 80,000 (around $150). In 60 percent of the locations, the survey finds, the socioeconomic situation has deteriorated in terms of access to essential social services (health care, drinking water, and electricity).
Gabon committed to improving its social policy as a result of this report by focusing on three pillars:
- Creating integrated social services for the most vulnerable (elders, orphans, and disabled people);
- Increasing access to essential public services and reducing inequality. Despite having one of the highest net primary enrollment rates in Africa (96.4%), Gabonese education has a low completion rate (37.2 percent ).
Another issue Gabon must solve is the shortcomings of its national statistical system, which lacks credible data on poverty and income distribution, with the most recent data dating back to 2010. The consumer price index is still calculated using data from a 2003 survey of household consumption.
What African country has the lowest GDP?
Burundi is the poorest country not only in Africa, but also in the world, according to per capita GDP and GNI statistics from 2020. Somalia, Africa’s second poorest country, has the same distinction. In fact, much of the list follows this trend. With the exception of Afghanistan, an Asian country with a GNI per capita of $500, which would put it at #6 on the second list, Africa’s ten poorest countries are statistically the world’s ten poorest. To be honest, this ranking comes with one major caveat: it’s probable that more non-African countries, particularly North Korea, Syria, and/or Yemen, might feature in the bottom ten if they disclosed their GDP/GNI data openly, but they normally don’t. African countries, though, would still account for the majority of the list.
When looking at the data in isolation, it can be difficult to appreciate the magnitude of Africa’s economic issues. To put things in perspective, we might look at the GDP figures of the world’s wealthiest countries. Luxembourg has the greatest GDP per capita (PPP int.$) according to 2020 data, with a value of $118,356more than 150 times more than Burundi’s $771. Similarly, Norway’s world-leading 2020 GNI per capita (Atlas method, current US$) of $78,250 appears modest until one considers that it is 289 times larger than Burundi’s $270. The economic situation in Africa may not always be so dire. Over the last two decades, a few African countries have experienced tremendous economic growth and development. Many Africans may have a more promising economic future if this progress can be sustained and expanded. See the table below for a complete list of African countries and its 2020 GNI per capita (Atlas approach, current US$).