WASHINGTON, US – Zimbabwe’s economy is set to rebound strongly this year, with the International Monetary Fund (IMF) projecting a growth rate of 6% for 2024, according to the organisation’s latest World Economic Outlook released this week.
Growth is expected to moderate slightly to 4.6% in 2026.
The IMF’s updated forecast follows a difficult 2023, during which Zimbabwe’s economy is estimated to have expanded by only 2%. The slowdown last year was attributed to a combination of factors, including erratic rainfall patterns affecting agriculture, ongoing foreign currency shortages, inflationary pressures, and structural weaknesses in key sectors.
The new projections for 2024 and 2025 are broadly in line with estimates provided by Zimbabwe’s Ministry of Finance and Economic Development earlier this year, which also forecast strong recovery supported by improvements in mining, agriculture, and services sectors.
The IMF cited easing inflation, improved global commodity prices, and a more stable macroeconomic environment as key drivers behind the anticipated growth. However, the Fund also warned that Zimbabwe’s outlook remains vulnerable to domestic policy slippages, external shocks, and climate-related risks, particularly given the country’s heavy dependence on rain-fed agriculture.
In its outlook, the IMF also emphasised the need for continued fiscal discipline, structural reforms, and the restoration of investor confidence to sustain economic momentum beyond 2024.
Zimbabwe’s government has been implementing a raft of measures, including the introduction of a new currency, the ZiG (Zimbabwe Gold), in a bid to stabilise the economy and tame inflation. Early market responses have been cautious, with analysts noting that successful implementation of broader reforms will be crucial to maintaining growth and achieving lasting stability.
The IMF’s positive projection comes as Zimbabwe prepares for the rollout of several infrastructure projects and expansion plans in sectors such as energy, mining, and tourism, all seen as potential catalysts for stronger medium-term growth.
Regional analysts have noted that while the economic outlook is improving, underlying vulnerabilities — particularly related to public debt, external financing gaps, and governance issues — could limit the benefits of projected growth unless systematically addressed.
The IMF is expected to release a more detailed country-specific report later this year, which will provide further insights into Zimbabwe’s economic prospects and policy recommendations.
