Zimbabwe anticipates modest economic growth in 2026 compared with this year, as external headwinds continue to weigh on the country’s recovery from a severe drought and currency volatility, Finance Minister Mthuli Ncube said during a budget presentation on Thursday, reported by Reuters.
Gross domestic product for 2025 is projected to reach 6.6%, exceeding an earlier forecast of 6%, Ncube told lawmakers in parliament.
The growth is expected to be supported by a strong rebound in the agriculture and mining sectors following an El Niño-induced drought that limited growth to 1.7% in 2024.
However, growth next year is forecast at 5%, constrained by external challenges, Ncube added.
“While this marks a moderate recovery, growth remains softer than expected due to persistent global headwinds, weak external demand, and energy deficits that are afflicting a few countries, and also due to financing constraints,” Ncube said.
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The government aims for a budget deficit of 0.2% of GDP in 2026, down from an anticipated 0.3% this year. Inflation, currently at 19.0% year-on-year in November, is projected to fall closer to 10% by year-end and reach single-digit levels by early 2026, supported by exchange rate stability and strict fiscal and monetary policies.
“If this happens that will be the first time we achieve that kind of single-digit domestic inflation since 1997,” Ncube noted.
The International Monetary Fund (IMF) stated last month that it remains unable to provide financial support to Zimbabwe due to arrears, but acknowledged progress in ongoing economic reforms, as discussions continue over a potential staff-monitored program.
Zimbabwe’s total public debt stands at $23.4 billion, with $13.6 billion in external debt.
“As part of implementation of the Arrears Clearance and Debt Resolution Process, government is in discussion with the IMF with a view to sign off a staff-monitored programme during the first quarter of 2026,” Ncube said.
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