Zimbabwe’s economy is expected to rebound to 6 percent growth in 2025, recovering from an estimated 1.7 percent in 2024, according to the International Monetary Fund’s latest Article IV report. The Fund attributes the stronger outlook to improved agricultural production, firm commodity prices, and rising remittance inflows, which have provided resilience amid external headwinds. The IMF highlighted that higher gold and tobacco output, along with a rebound in services, will underpin this growth momentum.
The Zimbabwean government had earlier forecast a 6.6 percent expansion for 2025, buoyed by a strong tobacco harvest and increased mining sector activity, as reported by Reuters. The IMF, however, cautioned that the country’s growth trajectory could moderate to around 3.5 percent in the medium term without sustained fiscal discipline and stronger market confidence. It also emphasised the need for policy consistency to maintain recent stability gains.
The IMF noted progress in tightening monetary policy, curbing inflation, and reducing monetary financing, which have helped stabilise the exchange rate and improve liquidity conditions. Nonetheless, the Fund warned that persistent fiscal deficits, low foreign reserves, and structural weaknesses in the financial sector continue to weigh on investor sentiment, as highlighted in its country report.
Analysts say the projected rebound offers Zimbabwe a chance to rebuild investor trust, restore credit relationships with global lenders, and advance long-term reforms. However, experts stress that fiscal consolidation, governance improvements, and external debt resolution remain critical to sustaining economic recovery and ensuring inclusive growth.
