IMF Says Zimbabwe’s 2025 Economic Rebound Stronger Than Expected

The IMF says Zimbabwe’s 2025 economic rebound is stronger than expected, driven by gold exports, agricultural recovery, and easing inflation (image source)

HARARE – November 11, 2025 — Zimbabwe’s economy is rebounding faster than anticipated in 2025, according to the International Monetary Fund (IMF), which cited higher gold prices, agricultural recovery, and easing inflation as key drivers.

The IMF mission, led by Wojciech Maliszewski, concluded its visit to Harare on November 5, noting that the country’s macroeconomic indicators have improved significantly compared to projections made earlier this year. “Zimbabwe’s economic recovery in 2025 is stronger than previously anticipated,” Maliszewski said in a statement. “Agriculture and mining are leading the charge.”

Gold exports surged in Q3 2025, buoyed by global prices exceeding US$2,000 per ounce. Zimbabwe, which ranks among Africa’s top gold producers, has benefited from increased output at mines in Kadoma and Mazowe. Meanwhile, the agriculture sector rebounded following improved rainfall and government input support programs. Maize and tobacco yields rose by 18% and 12% respectively, according to the Ministry of Lands and Agriculture.

Annual inflation dropped to 9.8% in October 2025, down from 21.4% in January. The Zimbabwe dollar has remained relatively stable against the US dollar, aided by tighter monetary policy and increased foreign currency inflows from exports. “We’re seeing real gains in price stability,” said Reserve Bank of Zimbabwe economist Tapiwa Mudzonga. “This is critical for restoring consumer and investor confidence.”

Despite the positive outlook, the IMF cautioned against fiscal slippage. It urged the government to align the 2026 budget with sustainable financing sources and improve expenditure management. “The rebound is fragile. Without fiscal discipline, gains could be reversed,” Maliszewski warned.

Local businesses are cautiously optimistic. “We’re seeing more foot traffic and better liquidity,” said Rumbidzai Moyo, owner of a manufacturing firm in Southerton. “But we need consistent policy and access to affordable credit.” The Confederation of Zimbabwe Industries (CZI) echoed this sentiment, calling for reforms to ease the cost of doing business and attract foreign investment.

If current trends hold, Zimbabwe could post GDP growth above 4.5% in 2025, exceeding IMF forecasts. However, risks remain, including global commodity volatility and domestic political uncertainty ahead of the 2028 elections.