Zimbabwe Economy Maintains Positive Growth Momentum Despite Global Pressures

Zimbabwe’s economy is projected to remain on a positive growth path despite increasing global economic uncertainty and geopolitical tensions that continue to weigh heavily on international markets, Cabinet has heard.

Presenting the First Quarter 2026 Economic Developments and Outlook, Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, said global instability — particularly ongoing tensions in the Middle East — has intensified energy price increases, commodity market volatility and broader financial pressures affecting economies worldwide.

Professor Ncube warned that these external shocks continue to present risks to inflation, exchange rate stability and foreign currency reserves, while rising fertiliser costs and increased shipping expenses are also pushing up agricultural production costs.

Despite the challenging external environment, he said Zimbabwe’s economy remains resilient, supported by sustained macro-economic stability, targeted policy reforms and stronger agricultural output following favourable rainfall patterns.

Government, he said, is implementing measures to cushion citizens and businesses from escalating costs, including the removal of selected diesel taxes to lower transport and operational expenses and help contain inflationary pressures.

Treasury projects the economy to expand by approximately five percent in 2026, with the agriculture and mining sectors expected to remain the primary engines of growth.

Professor Ncube also highlighted encouraging inflation trends, noting that inflation declined from 4.1 percent in January to 3.8 percent in February, signalling continued progress in efforts to maintain price and economic stability.

The outlook reflects Government’s confidence in Zimbabwe’s economic resilience and recovery prospects, as authorities intensify measures to sustain growth, strengthen macro-economic fundamentals and shield the economy from the impact of global uncertainties.

By Witness A Phiri