Zimbabwe’s economy is projected to grow by six percent in 2025, according to the International Monetary Fund (IMF), signalling a strong rebound from last year’s drought-induced contraction.
The forecast follows an IMF Article IV consultation mission to Harare that concluded on Wednesday.
In a projection offers cautious optimism for Zimbabwe’s economic outlook contingent on continued policy discipline and structural reforms, the IMF cited improved macroeconomic stability, rising gold prices and tighter fiscal and monetary policies as key drivers of the recovery.
“During the first half of 2025, better climate conditions and historically high gold prices have boosted agricultural and mining activity, strengthening the current account and contributing to the recovery, with growth projected at 6 percent in 2025,” said IMF mission chief Wojciech Maliszewski.
Zimbabwe’s economy had slowed sharply in 2024, with agricultural output falling by 15 percent due to drought, compounded by reduced electricity generation and declining global prices for platinum and lithium.
However, the IMF noted that recent policy reforms – such as halting quasi-fiscal operations by the Reserve Bank of Zimbabwe, stabilisation of the new gold-backed currency (ZiG) and curbing inflation – have helped restore confidence.
The IMF also acknowledged fiscal improvements, including increased revenue collection and reduced inflation, which averaged 0.5 percent month-on-month from February to May 2025.
It, however, warned of persistent fiscal pressures from rising public sector wages, debt servicing and capital spending.
To sustain the recovery, the IMF recommended further reforms, including closing the fiscal financing gap without resorting to central bank borrowing, enhancing public financial management and improving the transparency of state-owned enterprises and the Mutapa Investment Fund.
The IMF welcomed Zimbabwe’s plan to transition to a mono-currency system by 2030 but urged authorities to clarify its implementation and continue strengthening the monetary and foreign exchange framework.
Zimbabwe has since 2009 used a multi-currency regime under which a basket of currencies – notably the US dollars and South African Rand – have been accepted as legal tender alongside the ZiG.
While the IMF continues to provide technical assistance, it remains unable to offer financial support due to Zimbabwe’s unsustainable debt and external arrears.
The Fund insisted that international reengagement and debt restructuring are essential for unlocking concessional financing.
JN/APA