Zimbabwe is on track to achieve projected economic growth of 6% in 2025, driven by strong agricultural output and high commodity prices, Finance Minister Mthuli Ncube announced on Thursday, July 31.
According to Reuters, the Southern African country’s economy showed signs of recovery in the first half of the year, after suffering from a severe drought and currency turbulence in 2024, which reduced GDP growth to 2%.
“Given the positive economic performance between January and June, we are confident that the 6% economic growth projected in the 2025 National Budget is achievable,” Mthuli Ncube told Parliament during a mid-year budget review. He added that “all sectors of the economy are expected to register positive growth in 2025, mainly due to a favorable agricultural season, improved electricity production, exchange rate stability, and inflation control.”
The minister did not provide updated figures on the budget deficit, which had been estimated at 0.4% of GDP in the 2025 forecast presented last November.
Zimbabwe’s fiscal situation remains under pressure due to grain imports, drought relief spending, and the public sector wage bill. Although the government has collected more revenue than in the same period last year, analysts warn that it may be difficult to contain the deficit without new fiscal measures.
The local currency, the ZiG, introduced in April 2024 to replace the Zimbabwean dollar, has remained stable against the U.S. dollar, but is still overshadowed by the widespread use of the U.S. dollar in daily transactions.
Ncube reiterated the government’s commitment to the gold-backed currency, emphasizing that it has benefited from tight monetary and fiscal policies.
Source: Diário Económico
