HARARE – The World Bank has trimmed Zimbabwe’s economic growth forecast for 2026 to 4.6%, down from the 5.0% projection issued in January, signalling a moderation in economic activity following a strong rebound expected this year.
According to the latest edition of the World Bank’s Global Economic Prospects report released in June 2026, Zimbabwe’s economy is projected to expand by 4.6% next year before slowing further to 4.2% in 2027. The revised outlook follows an estimated 7.5% growth rate in 2025, one of the strongest performances in Sub-Saharan Africa.
The downgrade reflects a broader trend of easing growth across developing economies as global demand softens, commodity prices stabilise, and investment conditions remain constrained by tighter international financial markets.
Despite the downward revision, Zimbabwe is still expected to rank among the region’s faster-growing economies, supported by continued mining output, agricultural recovery, infrastructure investments, and relative macroeconomic stability compared to previous years.
The country’s economic performance in 2025 was largely underpinned by a strong agricultural season following favourable rainfall, increased gold production, expanding lithium exports, and improved electricity generation, which helped boost industrial activity and export earnings.
However, economists note that sustaining high growth rates beyond the rebound phase may prove challenging. Structural constraints, including limited access to long-term capital, infrastructure deficits, high business operating costs, and external debt arrears, continue to weigh on the economy’s long-term growth potential.
The World Bank’s latest projections suggest that Zimbabwe’s economy is transitioning from a post-drought recovery phase to a more moderate growth trajectory. While growth above 4% remains robust by regional standards, it falls short of the levels required to significantly accelerate job creation, reduce poverty, and achieve upper-middle-income ambitions within the coming decade.
For investors, the outlook presents a mixed picture. Strong prospects in mining—particularly gold, platinum group metals, lithium, and other critical minerals—continue to attract interest, while growing opportunities in agriculture, energy, and manufacturing remain dependent on policy consistency and improvements in the business environment.
The revised forecast also comes as authorities continue efforts to stabilise the ZiG currency, contain inflationary pressures, and strengthen fiscal discipline. Analysts say maintaining macroeconomic stability will be critical in preserving investor confidence and supporting sustainable economic expansion.
Across Sub-Saharan Africa, growth is expected to remain uneven, with commodity-exporting nations benefiting from demand for critical minerals linked to the global energy transition, while countries facing debt distress and climate-related shocks are likely to experience weaker growth.
For Zimbabwe, the World Bank’s outlook suggests that while the economy remains on a positive growth path, the pace of expansion is expected to moderate after the strong gains recorded in 2025, underscoring the need for continued reforms to unlock higher levels of private-sector investment and productivity growth.
The post Zimbabwe’s Post-Recovery Growth Expected to Moderate, Says World Bank appeared first on The Zimbabwe Mail.