The International Monetary Fund (IMF) expects Zimbabwe economic growth 2025 to reach 6%, marking a robust recovery supported by agriculture, record gold prices, and resilient remittance inflows.
The projection follows a challenging year of climate shocks and economic adjustment, signalling renewed optimism for one of southern Africa’s most complex economies.
In its 2025 Article IV Consultation Report, the IMF noted that the country’s rebound is underpinned by improved terms of trade and tighter fiscal discipline. The Reserve Bank of Zimbabwe’s decision to halt quasi-fiscal operations and reduce monetary financing has eased inflationary pressures and stabilised the exchange rate. The report highlights that these measures, alongside effective liquidity management, have anchored the Zimbabwe Gold (ZiG) currency, which remains central to the government’s monetary strategy.
GDP expansion of 6% this year is forecast to coincide with a widening current account surplus, largely due to favourable export conditions. High global gold prices and steady diaspora remittances are expected to provide further balance-of-payments support. According to the Fund, sustained surpluses will allow the central bank to strengthen foreign reserves and enhance monetary credibility.
However, the IMF warned that lasting prosperity hinges on a deeper commitment to reform. Structural weaknesses in public finances continue to pose significant risks. The Fund called for rationalising corporate tax incentives, improving tax collection, and containing the public wage bill, all while safeguarding critical social spending. Such steps are considered vital to achieving fiscal consolidation and stimulating private-sector confidence.
To complement fiscal adjustments, Zimbabwe is urged to embrace a transparent, market-based foreign exchange regime. The IMF recommended limiting central bank interventions and aligning the exchange rate more closely with market dynamics. This transition, combined with clarity on the mono-currency plan for the ZiG, could enhance predictability and investor trust in the monetary system.
The IMF also stressed the importance of prudent liquidity management and coherent policy coordination between fiscal and monetary authorities. Without these, inflation risks could resurface, undermining recent gains in price stability.
Despite persistent challenges, Zimbabwe’s outlook appears stronger than it has been in years. The combination of sound monetary policies, favourable commodity prices, and agricultural recovery presents a rare opportunity for sustained progress. Yet, the momentum will only endure if governance and reform efforts deepen, ensuring that macroeconomic stability evolves into broad-based growth.
If effectively managed, Zimbabwe economic growth 2025 could mark the beginning of a new cycle of stability — one that restores investor confidence and sets a foundation for long-term resilience in a transforming regional economy.
Source: Further Africa
