Zimbabwe’s economy is expected to grow by 5.0% in 2026, supported by lower inflation, stronger mining output and improved agricultural performance, Finance, Economic Development and Investment Promotion Minister Mthuli Ncube said on Thursday.
Presenting the 2026 Mid-Term Budget and Economic Review to parliament, Ncube said the economy remained resilient despite global economic uncertainty and regional challenges after expanding by 8.3% in 2025.
He said inflation had continued to moderate during the first half of the year, reflecting prudent macroeconomic management and growing confidence in Zimbabwe’s gold-backed currency, the ZiG.
Annual headline inflation, which reached 95.8% in July 2025, fell to 15% by December and averaged 4.2% during the first seven months of 2026. Month-on-month inflation remained below 0.5% for most of the period, although it briefly accelerated in April following higher international oil prices linked to conflict in the Middle East.
Ncube said improved currency and exchange rate stability had helped attract record foreign direct investment of USD965 million in 2025, up from USD597 million the previous year.
Mining, agriculture and manufacturing are expected to underpin economic growth this year.
The mining sector is projected to expand by 5.6% after growing 10.4% in 2025, with gold production forecast to rise to 55.6 tonnes from 50 tonnes last year. Lithium export earnings increased 229.8% to USD782.2 million during the first half of 2026.
Agriculture is expected to grow by 6.9% following a favourable farming season, with grain production estimated at 2.4 million metric tonnes, while manufacturing output is projected to increase by 5.2% as industrial capacity utilisation rises to 63.5%.
Government revenue totalled ZiG137.8 billion during the first half of the year, exceeding expenditure of ZiG123.6 billion. The resulting budget surplus was used to service public debt and clear arrears owed to service providers.
Value Added Tax remained the largest source of government revenue, contributing 28.3% of collections, followed by personal income tax and corporate income tax.
Ncube said ministries and government agencies had utilised 42.5% of their annual budget allocations by the end of June and added there was no need for a supplementary budget this year.
The government spent ZiG11.8 billion on infrastructure projects during the review period, including road construction, dam development and water supply projects. Funding supported work on the Harare-Masvingo-Beitbridge Road and the Harare-Kanyemba Road, while the Gwayi Shangani and Kunzvi dam projects continued to advance.
Spending on education and health reached ZiG27.2 billion, including USD27.3 million from sugar tax revenues used to procure four radiotherapy cancer treatment machines for Parirenyatwa Group of Hospitals and Mpilo Central Hospital.
Zimbabwe’s public and publicly guaranteed debt stood at ZiG580.9 billion, equivalent to about USD21.7 billion, at the end of June. The government made external debt service payments of USD70 million during the first half of the year.
Ncube said Zimbabwe had met all but one of the quantitative targets under its 10-month Staff Monitored Programme with the International Monetary Fund, describing the programme as an important step toward resolving the country’s debt burden and restoring access to concessional financing.
He also highlighted Zimbabwe’s election as a non-permanent member of the United Nations Security Council and its admission to the New Development Bank as milestones that strengthen the country’s international engagement.
Reaffirming the government’s Vision 2030 agenda, Ncube said authorities would continue implementing policies aimed at preserving macroeconomic stability, promoting investment and sustaining economic growth as Zimbabwe seeks to attain upper-middle-income status by the end of the decade.
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