From Argentina To Zimbabwe: List Of Countries Facing Triple-Digit Inflation Rates

At a time when global recession fears, high interest rates, geopolitical tensions, and mass layoffs are already big enough threats that many countries are facing, another pain point in the picture is inflation.

Forget single or double digits; some countries are struggling with triple-digit inflation rates.

List Of Countries With Triple-Digit Inflation Rates

shutterstock

These four countries are struggling with triple-digit inflation rates at present, as per IMF data for October 2023.

Argentina-121.7%

smarteconomy24

Argentina is preparing for a crunch presidential election this Sunday, at a time when the country is facing a sky-high inflation rate. The nation¡¯s net reserves of foreign currency are in the red, and a recession is looming.

As per a Reuters report, Argentina's central bank reserves of foreign currency are near their lowest level since 2016 and, in net terms, widely seen by analysts to be in negative territory after a major drought hit exports of key cash crops such as soy, corn, and wheat.

The low reserves threaten the country's ability to repay debts to major creditors, the International Monetary Fund (IMF) and private bondholders, as well as cover key imports. The government has agreed to an extended currency swap with China to help cover some of its costs, and had to delay some payments to key trade partners, such as Brazil.

But the silver lining is that Argentina, which is rich in grains, shale gas, and lithium, could see a boost next year as better rains help the harvest, a new gas pipeline trims reliance on costly imports, and demand rises for the lithium needed for electric vehicle batteries.

Sudan-256.2%

afp

Last week, the IMF said that Sudan's GDP will contract by more than 18% in 2023 due to the war that has raged in the country since April this year. In its six-month World Economic Outlook published recently, the IMF said that the conflict is destroying infrastructure and compromising access to basic services.

The war, which began on April 15, is being fought between General Abdel Fattah al-Burhane and the Rapid Support Forces under General Mohamed Hamdane Dagalo, as per an Africanews report. It has killed more than 9,000 people and displaced over 5 million people in one of the world's poorest countries.

With inflation already at triple figures before the conflict, the dire economic outlook has worsened since April.

Africa's third-largest producer of gold has officially come to a virtual standstill, depriving the country of its main source of foreign currency income. Agriculture, one of the most important sectors accounting for 40% of GDP and 80% of jobs, has also been badly hit, with trade and financing severely impacted.

As per the report, the Sudanese pound has recently plummeted, losing 50% of its value since the start of the war.

With the Sudanese pound losing 50% of its value since April, the IMF warns that the impact of the conflict could be long-lasting, and reconstruction is likely to take years. The institute adds that neighbouring countries and North Africa will also suffer from a weakened Sudanese economy.

Also Read: Why Beyonce Is Being Blamed For High Inflation In Sweden

Zimbabwe-314.5%

synergiafoundation

Besides the more than 300% inflation rate, Zimbabwe has another big problem: the world's highest interest rates. At 150%, Zimbabwe's central bank had maintained the highest borrowing rates in the world at its rate-setting meeting in late September.

The monetary policy committee had decided to keep the benchmark interest rate at 150% for a second consecutive meeting. As per the Africa Business Insider report, high interest rates have been a strategy to combat inflation, which has been a persistent challenge in many African economies, and the delicate balance between controlling inflation and promoting economic growth is also a paramount concern for these central banks.

But that doesn¡¯t seem to be working, at least as of now. The IMF has even forecast that Zimbabwe¡¯s annual inflation rate is expected to rise to nearly 400% by the end of the year due to the depreciation of the local currency. According to the IMF¡¯s World Economic Outlook report, Zimbabwe¡¯s annual inflation rate is predicted to reach 396.2% by the end of this year and 190.2% in 2024.

Venezuela-360%

bnamericas

At 360%, Venezuela is currently facing the world¡¯s highest inflation rate, as per IMF data.

In a significant relief for the country recently, the US announced that it is partially lifting sanctions on Venezuela following the resumption of talks between the South American country¡¯s socialist government and a US-backed faction of the opposition. The US Treasury department has this week issued a six-month licence authorising transactions in Venezuela¡¯s oil and gas sectors, and a separate licence allowing dealings with national gold mining company Minerven, as per The Financial Times report.

The announcement of sanctions relief comes a day after the government of President Nicol¨¢s Maduro and the Unitary Platform ¡ª a US-backed faction of the opposition ¡ª resumed talks in Barbados. They agreed to hold a presidential election in the latter half of next year.

For the latest and more interesting financial news, keep reading Indiatimes Worth. Click here