Zimbabwe's stock market is up 800% this year and inflation is up 176%

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Zimbabwe's stock market is up 800% this year as investors seek shelter from blistering 176% inflation rate

As strong as the S&P 500 has looked this year, 2023's most blistering stock rally is happening in Harare, Zimbabwe. The market is up more than 800% to start the year, according to Bloomberg data.

But in a country that's seen its share of economic crises, there's little reason to cheer. Local investors have piled into stocks in the hope of protecting the value of their cash as inflation hit 176% in June. The central bank's primary lending rate is now hovering at 150%, the world's highest. Launched in 1894, the stock market of Zimbabwe is relatively small. Its total capitalization is about $1.8 billion, with 55 stocks to trade, and daily turnover of about $650,000, per Bloomberg.

Hyperinflation has plagued Zimbabwe's economy for over a decade, ravaging the country's currency. The Zimbabwe dollar has plunged this year, losing more than 80% in the last two months alone, and continues to fall.Last year,

 

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