Zim’s economy to grow by 6%- IMF

According to the International Monetary Fund (IMF)’s latest outlook, Zimbabwe’s economy will grow by 6 this year and 4.6 percent in 2026.

The IMF estimates that the economy grew by just 2% last year.

The 2024 estimates and 2025 growth projections match those given by the ministry of finance and investment promotion.

Zimbabwe is expected to be among the fastest growing economies in Africa this year, with the African Development Bank (AfDB) forecasting 5,3 percent growth.

The strong growth forecast is slightly below the 6 percent predicted by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, but it is still one of the fastest on the continent.

Niger is projected to be the fastest-growing economy in Africa, with an expected growth rate of around 11,1 percent due to its burgeoning oil production sector.

Agriculture is expected to lead Zimbabwe’s economic recovery following good rains experienced this season.

Last year, the economy was pegged back by the devastating impact of the El Nino-induced drought, reducing economic growth to 2 percent.

The drought reduced the maize harvest, a key staple in the country, by about 71 percent, according to the World Bank.

Growth is expected to be markedly faster driven by other key sectors such as mining, tourism and infrastructure development.

The AfDB’s African Economic Performance Report paints a highly positive outlook for Zimbabwe’s economy this year.

“In 2025, economic performance in Zimbabwe will benefit from agricultural recovery, greater electricity generation, and expected stability in commodity prices in mining, with growth projected to rise from an estimated 2,0 percent in 2024 to 5,3 percent in 2025,” stated the AfDB.

Agriculture has historically been a pillar of Zimbabwe’s economy.

Better access to financing and several Government support initiatives including inputs schemes are also expected to help boost production in the sector.

The mining sector is set to play a crucial role in the rebound, benefiting from stabilised and strong global commodity prices, including for gold, as well as increased investment in exploration and production.

The World Bank forecast growth in transport and distribution, construction, retail and manufacturing, which will contribute to Zimbabwe’s overall economic expansion.

Zwnews