Zimbabwe, A country from Africa, Central, Projects 5% GDP Growth Annually From 2026 to 2029
This follows a projected 6% growth in 2025, rebounding from a less than 2% growth in 2024 due to drought.
The growth forecast is primarily driven by expected improvements in agriculture, mining, ICT, and electricity sectors, assuming normal rainfall and a stable macroeconomic environment, according to the 2026 Budget Strategy Paper report.
However, the paper acknowledged risks such as adverse weather conditions, persistent power supply issues, and volatility in global commodity prices, which could dampen growth prospects.
The government plans to mitigate these risks through proactive policy measures. Inflation is expected to be subdued in 2026, with year-on-year inflation projected to reach 12.7% by year-end, supported by tight fiscal and monetary policies.
The fiscal policy framework aims for a budget deficit below 3% of GDP, with revenues of ZiG309.9 billion ($11.57 billion) and expenditures of ZiG335.6 billion ($12.53 billion) projected for 2026.
Government spending will prioritize agriculture, infrastructure, social protection, health, climate change adaptation, and education, according to the strategy paper.
Revenue mobilization will focus on improving tax collection, anti-smuggling efforts, and tax compliance.
