HARARE – Zimbabwe’s economy expanded to an estimated US$59.7 billion in 2025, following a major rebasing exercise by the Zimbabwe National Statistics Agency (ZIMSTAT) that updated the country’s Gross Domestic Product (GDP) reference year from 2023 to 2025.
According to newly released national accounts data, GDP at current market prices reached ZWG1.55 trillion in 2025, up from ZWG822.9 billion in 2024. Using year-end exchange rates, this translates to approximately US$59.7 billion, compared to US$31.9 billion the previous year.
The rebasing exercise, a standard statistical procedure undertaken periodically by national statistical agencies worldwide, provides a more accurate reflection of the economy’s structure, production patterns and expenditure trends by adopting a more recent benchmark year.
GDP Rebasing Reflects Changing Economic Structure
ZIMSTAT selected 2025 as the new base year after determining it represented a relatively stable economic period characterised by lower inflation, a strong agricultural season, improved mining performance and favourable international commodity prices, particularly for gold.
GDP rebasing does not in itself create economic growth. Instead, it updates the weights assigned to different sectors and activities within the economy, ensuring national accounts better capture emerging industries, shifts in production and evolving consumption patterns.
The move aligns Zimbabwe’s statistical framework with international best practices and provides policymakers, investors and development partners with a more accurate picture of the country’s economic structure.
Real Economic Growth Reaches 8.3%
Using constant 2025 prices, Zimbabwe recorded real GDP growth of 8.3% in 2025, indicating genuine expansion in economic activity after adjusting for price changes.
GDP at constant prices increased from ZWG1.432 trillion in 2024 to ZWG1.551 trillion in 2025, reflecting broad-based growth across several productive sectors.
The strong growth performance was largely driven by agriculture, mining, electricity generation, transport services and tourism-related activities.
Manufacturing Retains Largest Share of GDP
Sectoral data show that manufacturing remained the largest contributor to Zimbabwe’s economy, accounting for 16.8% of total GDP.
Mining and quarrying followed closely at 15.9%, underscoring the sector’s continued strategic importance to economic growth and foreign currency generation.
Agriculture, forestry and fishing contributed 11.1%, while wholesale and retail trade accounted for 11.0%. Financial and insurance activities represented 6.3% of GDP.
Collectively, these five sectors generated more than 60% of national economic output, highlighting the dominant role of industry, resource extraction, commerce and financial services in Zimbabwe’s economic landscape.
Agriculture Emerges as Fastest-Growing Sector
Agriculture recorded the strongest expansion during the year, growing by 27.9%, supported by favourable weather conditions and improved crop yields.
Electricity supply grew by 14.9%, reflecting increased power generation capacity and improved energy availability to productive sectors.
The accommodation and food services sector expanded by 12.8%, signalling continued recovery in tourism and hospitality activities.
Transport and storage, as well as mining and quarrying, each grew by 10.4%, benefiting from increased economic activity and stronger commodity production.
The robust performance across multiple sectors points to a more diversified growth profile compared to previous years, where mining and agriculture often dominated economic expansion.
Household Spending Continues to Drive Growth
Analysis of GDP through the expenditure approach shows that household consumption remained the primary engine of economic activity.
Household spending reached ZWG1.208 trillion, equivalent to approximately US$46.5 billion, accounting for 77.9% of GDP.
Government consumption represented 12.8% of economic output, while gross capital formation, a key indicator of investment, stood at ZWG116.5 billion, or 7.5% of GDP.
Net exports remained negative at ZWG14.8 billion, indicating that imports continued to exceed exports during the year despite strong mineral exports.
Economists often view sustained improvements in investment levels as critical for raising future productive capacity and supporting long-term economic growth.
Labour Income Accounts for Largest Share of GDP
The income-based measure of GDP reveals that compensation of employees remained the largest component of national income generation.
Wages and salaries amounted to ZWG668.3 billion, representing 43.1% of GDP.
Gross operating surplus, which measures corporate profits and business earnings, reached ZWG517.9 billion, while mixed income generated by small businesses and informal sector activities totalled ZWG278.2 billion.
Net taxes on products contributed ZWG86.2 billion to overall GDP.
The figures highlight the significant role played by labour income in supporting domestic consumption and economic activity.
New Benchmark for Economic Planning
The rebased GDP estimates provide a revised benchmark for assessing Zimbabwe’s economic performance and future growth prospects.
The data portray an economy benefiting from strong agricultural recovery, sustained mining expansion and improved performance in infrastructure-related sectors such as electricity and transport.
With GDP now estimated at nearly US$60 billion, the updated national accounts offer policymakers and investors a clearer picture of the size, composition and trajectory of the Zimbabwean economy.
Going forward, 2025 will serve as the new reference year for measuring economic growth, sectoral performance and structural transformation, allowing for more accurate comparisons and economic planning in the years ahead.
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