Why Zimbabwe is on the verge of collapse

1st September 2020 (Last Updated September 1st, 2020 09:01)

1 September

Professor Steve Hanke, economist at Johns Hopkins University, shared an article on the political and economic crisis in Zimbabwe.

Reuters report that Western diplomats have raised concerns over the country, which has been suffering with inflation at more than 800%.

Nurses have been on strike in the country and several political opponents have been arrested raising concerns over human rights violations and use of authoritarian tactics.

Diplomats note that the pandemic must not be used as an excuse for restricting the freedom of citizens.

Hanke opines that Zimbabwe is on the verge of collapse under these conditions.

Meanwhile, China is the only country projected to growth amid the pandemic in 2020. The country, however, may not be growing through demand but rather through public debt and foreign debt.

Daniel Lacalle, chief economist at Tressis SV, tweeted on how the weak consumption recovery and high inventory in China do not indicate GDP growth in the country as suggested by headlines.
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