BULAWAYO, (New Ziana) – The government expects the economy to grow by 6.6 percent this year, up from its earlier forecast of six percent, Finance, Economic Development and Investment Promotion Minister, Prof Mthuli Ncube said on Friday.
Nominal gross domestic product, one the other hand, is expected to reach US$52.3 billion, up from US$45 billion last year. Prof Ncube said the good economic performance was inspite of global headwinds and exogenous shocks, including climate change, commodity price fluctuations, and energy supply constraints.
He was speaking at the Zimbabwe Economic Development Conference (ZEDCON) here. “Zimbabwe stands at a critical juncture. Despite global headwinds, as well as exogenous shocks, including climate change, commodity price fluctuations and energy supply constraints, the resilience of our economy and the strength of our resource endowment give us immense reason for optimism,” he said.
“In 2025 and beyond, our economy is poised for a strong recovery and sustained growth following the drought-induced slowdown we experienced in 2024. “Building on this foundation, economic growth for 2025 is now projected above the original projection of 6% to around 6.6%, with an expected nominal GDP of approximately US$52.3 billion,” Prof Ncube said.
He said the turnaround will be driven by sectors such as agriculture, mining, and manufacturing, which continue to form the backbone of the nation’s economic resurgence and transformation. T
he Zimbabwe National Statistics Agency (ZIMSTAT) recently shared the results of a comprehensive Economic Census, which revealed robust economic activities taking place throughout the country. “Notably, the Economic Census shows that the country’s Gross Domestic Product stood at US$45.7 billion in 2024, reflecting positive momentum in our national economy.
“It is imperative that we sustain this growth momentum, while ensuring that the benefits of growth accrue and reach every citizen of Zimbabwe. Of particular significance is the economic census’ revelation regarding the manufacturing sector.
“Contrary to earlier perceptions, the sector’s contribution has exceeded expectations, underscoring the tangible progress towards economic transformation that we are witnessing,” said Prof Ncube.
He said the growth in manufacturing is a clear testament to the effectiveness of government policies aimed at industrial revitalisation, beneficiation, and value addition. “We must stay the course for the structural transformation of our economy and inclusive growth. “The implementation of sound macroeconomic policies, combined with focused sectoral reforms is essential to economic recovery and transformation,” said Prof Ncube.
He also said the higher projection is on account of more-than-anticipated output in the agricultural sector, particularly tobacco following favourable climatic conditions, and mining sector growth buoyed by high commodity prices, notably gold. ”
This growth trajectory is further underpinned by macroeconomic stability, with inflation moderating significantly since the introduction of the Zimbabwe Gold (ZiG) currency. “The local currency has seen increased stability marked by narrowing exchange rate gaps across formal and parallel markets. Prudent fiscal and monetary policies have fostered an environment conducive for investment and growth,” he said.
Prof Ncube also said the government is undertaking a comprehensive exercise to reduce the cost of doing business and enhance competitiveness. “In line with our commitment to foster a more enabling business climate, government is undertaking a comprehensive exercise to reduce the cost of doing business and enhance competitiveness. ”
This includes systematically cutting levies, fees and charges across all sectors in order to encourage efficiency, productivity and growth. “The goal is to cut red tape, eliminate overlapping charges and create a more enabling environment for investment and business expansion,” he said.
To date the government has streamlined levies, fees and charges in agriculture, tourism and transport sectors. “Our vision is to create conditions for an economy that is growing rapidly, while conferring equal opportunities to all Zimbabweans, regardless of station, race or creed, tribe or colour. It is a collective vision towards a shared destiny,” said Prof Ncube.
New Ziana
