IMF Sees Zimbabwe’s Economy Growing 6% on Strong Agriculture, Gold Prices, and Remittances

Zimbabwe’s economy is set to expand by 6 percent in 2025, driven by a strong agricultural season, record-high gold prices, and steady remittance inflows, according to the International Monetary Fund (IMF).

In its 2025 Article IV Consultation Report released on Friday, the IMF said the rebound marks a recovery from last year’s slowdown, which was caused by extreme weather and global trade shocks. The Fund credited recent policy tightening — including the end of quasi-fiscal operations and central bank monetary financing — for helping stabilise inflation and easing pressure on the local currency.

“GDP growth is expected to rebound to 6 percent this year and the current account surplus to widen, both driven by a good agricultural season, record-high gold prices and sustained remittance inflows,” the IMF noted.

The report also highlighted that inflation is projected to remain relatively low, supported by strict liquidity controls and efforts by the Reserve Bank of Zimbabwe (RBZ) to stabilise the Zimbabwe Gold (ZiG) currency. The IMF said the outlook assumes continued discipline from the central bank, including reserve accumulation from gold royalties and current account surpluses.

However, the Fund warned that sustaining growth will require comprehensive structural reforms aimed at strengthening public finances and improving monetary and exchange rate policy. It called for measures to rationalise generous corporate tax incentives, strengthen revenue collection, and manage spending pressures — particularly the public wage bill — while protecting essential social services.

“A degree of macroeconomic stability has been maintained recently,” the IMF observed, noting that “tighter policies — notably the halting of quasi-fiscal operations and monetary financing — have helped significantly reduce inflation and exchange rate pressures.”

On the monetary side, the Fund urged authorities to transition towards a transparent, market-based foreign exchange system, with limited RBZ intervention and an exchange rate driven by supply and demand dynamics.

The IMF further encouraged Zimbabwe to improve liquidity management, clarify its mono-currency transition plan, and strengthen the role of the ZiG in domestic transactions.

Despite the positive outlook, the IMF cautioned that policy consistency, fiscal discipline, and institutional reforms will be critical to maintaining stability and achieving long-term, inclusive growth.