Zimbabwe Closes 2025 on Strong Economic Rebound

Zimbabwe closes 2025 with a strong economic rebound as inflation falls sharply and key sectors such as agriculture, mining and manufacturing record solid growth (image source)

HARARE — Zimbabwe is closing 2025 on a strong economic rebound, posting broad-based growth across key sectors following the El Niño-induced slowdown that constrained performance in 2024. Improved macroeconomic management, tighter fiscal discipline and stronger coordination between monetary and fiscal authorities have underpinned the recovery, with inflation easing sharply and productive sectors regaining momentum.

One of the most notable developments has been the dramatic decline in inflation. Annual ZiG inflation, which peaked at 95,8 percent in July, fell to 15 percent by December, reflecting improved exchange-rate stability and restrained public spending. The easing of price pressures has restored planning certainty for businesses and households. Economic commentator Tinevimbo Shava said stability was now translating into tangible economic benefits. “When prices are predictable, businesses can plan and households can manage their budgets more effectively,” he said.

Agriculture staged a strong recovery in 2025, supported by better rainfall, expanded irrigation infrastructure and improved agronomic practices. The sector is estimated to have grown by 24 percent, strengthening food security, boosting rural incomes and stimulating agro-processing industries. Tobacco production reached record levels, with sales exceeding 350 million kilogrammes and earnings surpassing US$1 billion, supported by more than 108 000 participating farmers. Wheat output also crossed 640 000 tonnes, driven by mechanisation, irrigation expansion and targeted government support.

Mining remained a central pillar of growth, with output projected to increase by 7,3 percent. Gold production reached 41,8 tonnes by November, surpassing national targets. Artisanal and small-scale miners contributed significantly to deliveries, aided by ongoing formalisation initiatives. Gold export earnings rose sharply to US$3,76 billion in the first ten months of the year, bolstering foreign-currency inflows and supporting exchange-rate stability. Analyst Namatayi Maeresera said the benefits extended across the economy. “Strong gold earnings support currency stability, which helps contain inflation and benefits the wider economy,” she noted.

Manufacturing expanded by an estimated 4,2 percent, supported by improved electricity supply and reduced macroeconomic volatility. Power generation increased by about 6,7 percent, easing production constraints across industry. Growth was also recorded in wholesale and retail trade, financial services and ICT, reflecting improved confidence and stability. Infrastructure development, including the Trabablas Interchange and continued upgrades of major highways, has further enhanced productivity and connectivity.

With overall economic growth projected at 6,6 percent in 2025, analysts say Zimbabwe is entering 2026 with stronger resilience anchored in stability, infrastructure investment and sector-wide recovery. If current trends are sustained, the country is expected to consolidate gains and deepen inclusive economic growth in the year ahead.