Fact Check: Zimbabwe's economy suffers from hyperinflation and currency instability.

Fact Check: "Zimbabwe's economy suffers from hyperinflation and currency instability."

What We Know

Zimbabwe has been grappling with hyperinflation and currency instability since the late 2000s. According to Wikipedia, hyperinflation in Zimbabwe began in February 2007, reaching staggering heights in mid-November 2008, with an estimated inflation rate of 89.7 sextillion percent year-on-year. During this period, the government ceased publishing official inflation statistics, making it challenging to measure the extent of the crisis accurately. The situation became so dire that a $100 trillion bill could not cover a simple bus fare. By April 2009, Zimbabwe stopped printing its currency and transitioned to using foreign currencies, primarily the US dollar.

In June 2019, Zimbabwe reintroduced its local currency, the Real Time Gross Settlement dollar (RTGS), which was later referred to simply as the "Zimbabwe dollar." However, inflation surged again, reaching 175% by mid-July 2019, and continued to escalate, with annual inflation estimated at 737% by July 2020. The International Monetary Fund (IMF) noted that Zimbabwe experienced "successive bouts of hyperinflation" over the years, although recent policy measures have aimed to stabilize the local currency and reduce inflation (IMF).

Analysis

The claim that Zimbabwe's economy suffers from hyperinflation and currency instability is supported by substantial evidence. The historical context provided by the Wikipedia article outlines the progression of hyperinflation and the government's responses, including the abandonment of its currency and reliance on foreign currencies. The IMF's recent report indicates that while there have been improvements in macroeconomic stability, the country still faces significant challenges, including high inflation rates, which were reported at 85.7% in April 2025 (Reuters).

The reliability of these sources is generally high. The Wikipedia entry is based on a wide range of historical data and reports from credible organizations, while the IMF is a reputable international financial institution that provides detailed analyses of member countries' economies. However, it is essential to note that the IMF's perspective may be influenced by its policy recommendations and the need for economic reforms, which could introduce a degree of bias in its assessments.

Despite recent efforts to stabilize the economy, the ongoing high inflation rates and the historical context of hyperinflation indicate that the claim holds true. The economic policies implemented have not yet fully eradicated the underlying issues that led to hyperinflation, and the reliance on a newly introduced currency, the ZiG, suggests that currency instability remains a concern (World Economic Forum).

Conclusion

Verdict: True
The claim that Zimbabwe's economy suffers from hyperinflation and currency instability is substantiated by historical data and recent reports. While there have been attempts to stabilize the economy and currency, the persistent high inflation rates and the legacy of hyperinflation indicate that the country continues to face significant economic challenges.

Fact Check: Zimbabwe's economy suffers from hyperinflation and currency instability.