Zimbabwe’s short-term economic prospects are strengthening, with the World Bank projecting growth to hold at 5 percent in 2026.
The latest Zimbabwe Economic Update, unveiled in Harare on 2 December, attributes this momentum to solid expansion across agriculture, industry and the services sector. The report highlights a resilient external position, underpinned by mineral exports and remittance inflows, which are helping the country maintain a modest current account surplus. It reaffirms an anticipated 6.6 percent growth rate for 2025, supported by rebounding agricultural output, renewed activity in iron and steel production, and steady gains in services.
Poverty levels are expected to decline gradually as the economy recovers. However, the World Bank cautions that progress remains vulnerable to inflationary pressures and weather-related disruptions, particularly for rural communities reliant on rain-fed farming and limited off-farm employment.
The report underscores the need for continued macroeconomic discipline, alongside sustained efforts to resolve arrears and improve the debt position. It calls for deepened structural reforms, with an emphasis on fully executing business environment improvements designed to attract investment and accelerate private sector-led growth.