Zimbabwe Eyes 6% Economic Growth in 2025 Amid Agricultural and Commodity Gains

Zimbabwe is projected to reach a 6% economic growth rate in 2025, buoyed by strong agricultural performance and favorable global commodity prices, according to Finance Minister Mthuli Ncube, who addressed parliament on Thursday.

The country’s economy has started to rebound in the first half of the year after experiencing significant setbacks in 2024 due to a harsh drought and currency instability, which had reduced GDP growth to just 2%.

“Based on the encouraging economic trends observed from January to June, we believe the 6% growth target outlined in the 2025 National Budget is within reach,” Ncube stated during a mid-year fiscal review.

He added that all major sectors are expected to expand in the coming year, supported by a better farming season, increased power supply, and greater stability in both exchange rates and inflation.

Ncube did not update lawmakers on the fiscal deficit, which was previously estimated at 0.4% of GDP for 2025 during last November’s budget presentation.

Despite stronger revenue collection compared to the same period last year, Zimbabwe’s budget continues to be stretched by high spending on grain imports, drought assistance, and government salaries. Analysts warn that managing the fiscal shortfall could be challenging without additional policy interventions.

Since its introduction in April 2024, the ZiG — a gold-backed currency that replaced the Zimbabwe dollar — has maintained relative stability against the U.S. dollar. However, U.S. dollars still dominate most daily transactions.

Ncube reaffirmed the government’s support for the ZiG and credited its stability to disciplined monetary and fiscal management.