THE African Development Bank (AfDB) has revised Zimbabwe’s economic growth forecast for 2025 upwards to six percent from the initial projection of over five percent, driven largely by a significant increase in agricultural output.
Findings from the 2025 Zimbabwe Country Focus Report, released this Wednesday, paint a positive outlook for the country’s macroeconomic performance this year.
The report indicates that following subdued growth of two percent in 2024, the economy is poised for a rebound, supported by a more than 12 percent rise in agricultural production.
“Economic growth slowed to two percent last year from 5,3 percent in 2023 due to the impact of the El Nino induced drought, reduced agricultural output by about 15 percent,however the Zimbabwe Gold currency showed relative stability since its introduction in April 2024. Annual ZiG inflation averaged 55.7 percent in 2024, up from an estimated 29.4 percent in 2023. The outlook is positive, with real GDP projected at six percent, driven mainly by a 12.8 percent rebound in agriculture owing to a bumper harvest,” AfDB Deputy Director General for Southern Africa, Ms Moono Mupotola said.
While the report notes the anticipated impact of local and global shocks on the economy, monetary authorities are pinning hopes for growth on the continuous stability of the exchange rate and prices.
“Macroeconomic stability is the foundation for a thriving nation. While we welcome the findings of the report, as central bank authorities, we will continue to adhere to a tight liquidity management policy. Our goal is to consolidate current gains, monitor and evaluate global economic trends, and ensure the stability needed to restore business confidence. We are also working closely with the Treasury and other stakeholders to achieve our stability targets,” Reserve Bank of Zimbabwe Deputy Governor, Dr Innocent Matshe said.
Other takeaways from the report include an anticipated growth rate of diaspora remittances, the need for efficient use of domestic resources and diversifying exports, curbing corruption and creating employment.
