HARARE – Zimbabwe has been projected to be Southern Africa’s best-performing economy in 2025, with the International Monetary Fund (IMF) forecasting an impressive six percent Gross Domestic Product (GDP) growth — a significant rebound as the nation pushes towards its Vision 2030 targets.
According to the latest IMF and World Bank Spring Meetings held in Washington D.C., the country’s growth trajectory is expected to rise sharply from 1.7 percent in 2024 to six percent this year, driven by strong performances across key sectors.
The IMF attributes Zimbabwe’s economic rebound to improved agricultural output, a surge in infrastructure development, recovery in manufacturing, stable exchange rates, price stability, favourable terms of trade, and rising global gold prices.
At six percent, Zimbabwe’s projected growth rate places it ahead of regional peers, including South Africa, Botswana, Zambia, Angola, Malawi, Mozambique, Namibia, and the Democratic Republic of Congo.
Speaking during a media briefing following the release of the regional economic outlook, IMF African Department Director, Mr Abebe Aemro Selassie, commended Zimbabwe for its resilience and commitment to restoring macroeconomic stability despite limited access to international concessional funding.
“Zimbabwe has gone through quite a lot of challenges in recent years. What distinguishes it from other countries in the region is that it has not had access to concessional funding to the same degree as others, yet it continues to implement sound policies,” Mr Selassie said.
“It is encouraging to see the significant efforts being made in recent months to stabilise the economy and promote sustainable growth.”
The IMF also praised the fiscal and monetary reforms introduced by the Zimbabwean government, particularly measures to curb excessive central bank financing — a move seen as critical to taming inflation and stabilising the exchange rate.
“Importantly, recourse to central bank financing has diminished quite a lot, and it will be vital to sustain that momentum. This repeated reliance on central bank funding has previously caused major inflationary and exchange rate challenges,” Mr Selassie added.
“We are encouraged by the recent policy direction and progress made. Sustaining and refining these policies will be key to helping Zimbabwe move forward.”
The IMF further highlighted that Zimbabwe’s projected six percent growth rate outpaces the Sub-Saharan Africa regional average of four percent, reflecting the country’s growing economic momentum amid global recovery trends.
The Fund noted that easing geopolitical tensions, improved commodity prices, and recovery from climate-related disruptions are expected to support stronger regional and global growth throughout 2025.
Zimbabwe’s latest ranking marks a significant turnaround for the economy, which has battled inflationary pressures, currency instability, and the lingering effects of global shocks in recent years.
If sustained, analysts say the projected growth could position Zimbabwe as a key investment destination in Southern Africa and accelerate progress towards achieving Vision 2030 — the government’s roadmap for attaining upper-middle-income status.
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