Economic Impact of COVID-19 Induced Lockdown in Zimbabwe

Abstract – Economic Impact of COVID-19 Induced Lockdown in Zimbabwe. The government of China officially declared the outbreak of COVID-19 on the 9th of January 2020. The virus spread more rapidly to many parts of the world and the WHO declared COVID-19 a pandemic on the 11th of March 2020. In a bid to reduce the spread of the novel virus, governments across the world introduced lockdown measures. Zimbabwe introduced its lockdown measures on the 31st of March 2020, the country closed its borders to the rest of the world serve for cargo and returning residents. Using qualitative and comparative analysis methodology, the results from the study revealed that the COVID-19 induced lockdown had a dramatic impact to the Zimbabwean economy and societal welfare. During the lockdown, prices of basic goods continued to increase and cross border trade was brought to a halt leading to shortages of some imported basic goods. The exchange rate continued to depreciate, government revenue was affected and informal traders lost income during the lockdown. The study recommended the government to institute measures that support the businesses and vulnerable members of the society. The study also recommended the government to sustain the support measures for at least six months.

Keywords: COVID-19, lockdown, economic challenges, societal welfare

[Cite as: Nyabunze, A., and Siavhundu, T. (2020). Economic Impact of COVID-19 Induced Lockdown in Zimbabwe. Diverse Journal of Multidisciplinary Research, Vol. 2, Issue 5, Pages 1-7.]