IMF projects Zimbabwe as Southern Africa’s best performing economy in 2025

Zimbabwe has emerged as Southern Africa’s best-performing economy for 2025, with a projected rebound in Gross Domestic Product (GDP) growth of six percent as the country journeys towards Vision 2030.

 

According to the new growth projections for the Sub-Saharan Africa region released at the just-ended IMF, World Bank Annual Spring Meetings, in Washington DC, United States, Zimbabwe’s economy is expected to grow by six percent this year, up from one comma seven percent last year.

 

The rebound is attributed to improved agriculture production, favourable terms of trade, a boom in infrastructure developments, recovery in manufacturing, stable exchange rate and prices as well as rising global gold prices, among other indicators.

 

At six percent growth forecast, Zimbabwe is outpacing regional peers such as economic giant, South Africa, Botswana, Zambia, Angola, Malawi, Mozambique and Democratic Republic of Congo Namibia.

 

In a media briefing after the release of the new growth projections this Monday, IMF African Department Director, Mr Abebe Aemro Selassie noted that Zimbabwe has achieved commendable progress towards restoring macro-economic stability.

 

“Zimbabwe has gone through quite a lot of challenges in recent years, and one of the things that distinguishes Zimbabwe from other countries in the region is that they have not been able to access concessional funding to the same degree that others have, helping defray the impact of all global shocks of recent years. Against this difficult backdrop, it is good to see that the country has been trying to put in place the right policies and in recent months, I think we have seen significant effort being made,” he said.

 

The IMF also lauded reforms implemented by the fiscal and monetary authorities to consolidate current economic gains.

 

“Importantly, I think recourse to central bank financing has diminished quite a lot, it will be important to sustain that because it is this repeated recourse to central bank financing that has created a lot of difficulties in the past, also with inflation, with exchange rare and the foreign exchange environment that the country has.

 

“We are encouraged by what the government has been doing in recent months and I think that needs to be sustained, like all countries. A combination of current policies and continued refinement in policies will be key to help Zimbabwe move forward and we are encouraged as I said about all of the progress that has been made and we are trying to work as closely as we can to help the country implement the vision that they have for promoting growth,” Selassie noted.

 

Zimbabwe’s growth projection for 2025 is also above the IMF average growth forecast for the Sub-Saharan Africa region at around four percent, with expectations of a rebound in the global economies driven by improved commodity prices, easing of geopolitical tensions and recovery from the effects of climate change.

 

ZBC