The World Bank has classified Zimbabwe as a lower-middle-income country for the current 2023 fiscal year.

The classifications are updated each year on July 1 and are based on the GNI per capita of the previous year (2021).

For the current 2023 fiscal year, low-income economies are defined as those with a GNI per capita, calculated using the World Bank Atlas method, of $1,085 or less in 2021; lower-middle-income economies are those with a GNI per capita between $1,086 and $4,255; upper-middle-income economies are those with a GNI per capita between $4,256 and $13,205; high-income economies are those with a GNI per capita of $13,205 or more.

Meanwhile, Zimbabwe’s annual inflation jumped to 191,7% in June from 131,7% recorded in May, further spiking prices of essential goods and services.

The 60% point movement comes on the back of yet another fuel price increase from US$1,76 to US$1,88 for diesel and from US$1,73 to US$1,77  for petrol.

Speaking during the Zimbabwe National Chamber of Commerce (ZNCC) 2022 annual congress in Victoria Falls the economic outlook was gloomy due to high inflation and currency volatility.

“My advice to the business community is to tighten your seat belts, seriously. I don’t see the measures adopted in the last few days impacting the underlying instability of the money market. I think inflation is going to escalate. I project hyperinflation within two months. Hyperinflation is 50% per month,” he said.