Between 2000 and December 2007, the national economy contracted by as much as 40%; inflation vaulted to over 66,000%, and there were persistent shortages of hard currency, fiat currency, fuel, medicine, and food. GDP per capita dropped by 40%, agricultural output dropped by 51% and industrial production dropped by 47%.
Direct foreign investment has all but evaporated. In 1998, direct foreign investment was US $400 million. In 2007, that number had fallen to US $30 million
Critics point to the so-called "Zimbabwe Democracy and Economic Recovery Act of 2001" signed by Bush in 2001 as an effort to undermine Zimbabwe's economy. Soon after the bill was signed,
IMF cut off its resources to Zimbabwe. Financial institutions began withdrawing support for Zimbabwe. Terms of the sanctions made it such that all economic assistance would be structured in support of "democratisation, respect for human rights and the rule of law."
The EU terminated its support for all projects in Zimbabwe. Because of the sanctions and US and EU foreign policy,
none of Zimbabwe's debts have been cancelled as in other countries.[11]
Other observers also point out how the
asset freezes by the EU on people or companies associated with Zimbabwe's Government have had significant economic and social costs to Zimbabwe.[12]
and
the United Nations World Food Programme stopping its food aid due to insufficient donations from the world community, has forced the government into borrowing from local sources.
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