HARARE – Zimbabwe is forecasting a strong economic growth rebound, expecting a rise to 6 percent in 2025, up from just 2 percent this year. The recovery will be driven by improved agricultural performance and enhanced power generation, following the impacts of a severe drought, according to Finance Minister Mthuli Ncube’s statement on Thursday.
In his budget speech, Ncube also projected a reduced budget deficit of 0.4 percent of GDP for 2025, compared to 1.4 percent in 2024.
Like many countries in southern Africa, Zimbabwe’s economy has been severely impacted by an El Nino-induced drought that reduced food production and hydroelectric power supply. Additionally, weaker lithium and platinum prices have affected the mining sector.
Ncube shared that the agriculture sector is expected to grow by 12.8 percent in 2025, following a 15 percent contraction this year. The mining sector is projected to expand by 5.6 percent, up from 2.3 percent in 2024.
Zimbabwe’s ongoing currency issues continued through 2024, with the government replacing the Zimdollar with the ZiG (Zimbabwe Gold) in April, a currency that has faced challenges since its introduction. Ncube indicated that the government will focus on gaining public acceptance of the ZiG in 2025, as many locals continue to use foreign currencies like the U.S. dollar for most transactions.
He also noted that in 2025, government revenues are expected to exceed US$7.5 billion, with expenditures projected at US$7.7 billion. – Reuters
