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Mthuli Ncube sees 2025 growth rebound after this year's drought
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Zimbabwe has projected economic growth to accelerate to 6 percent in 2025 from 2 percent this year, helped by improved agricultural output and power generation as the country recovers from a severe drought, finance minister Mthuli Ncube said on Thursday.
Ncube added in a budget speech that the budget deficit was seen at 0.4 percent of gross domestic product next year versus 1.4 percent this year.
Like other countries in southern Africa, Zimbabwe's economy was dealt a blow by an El Nino-induced drought which depressed food production and hydroelectric power supply.
Weaker lithium and platinum prices also weighed on its mining sector.
Ncube told lawmakers in parliament that the agriculture sector was projected to grow 12.8 percent in 2025 following a 15 percent contraction this year, while mining growth is seen accelerating to 5.6 percent next year from 2.3 percent in 2024.
Zimbabwe's long-running currency problems persisted in 2024 as policymakers dumped the Zimdollar in April and replaced it with the ZiG, or Zimbabwe Gold, that has also slumped since its launch.
Ncube said without elaborating further that the government would next year seek to encourage greater acceptance of the ZiG by a sceptical public, who still use foreign currencies like the dollar for the bulk of local transactions.
The finance minister said revenues during 2025 are expected to top US$7.5 billion against expenditures of US$7.7 billion.
Ncube added in a budget speech that the budget deficit was seen at 0.4 percent of gross domestic product next year versus 1.4 percent this year.
Like other countries in southern Africa, Zimbabwe's economy was dealt a blow by an El Nino-induced drought which depressed food production and hydroelectric power supply.
Weaker lithium and platinum prices also weighed on its mining sector.
Zimbabwe's long-running currency problems persisted in 2024 as policymakers dumped the Zimdollar in April and replaced it with the ZiG, or Zimbabwe Gold, that has also slumped since its launch.
Ncube said without elaborating further that the government would next year seek to encourage greater acceptance of the ZiG by a sceptical public, who still use foreign currencies like the dollar for the bulk of local transactions.
The finance minister said revenues during 2025 are expected to top US$7.5 billion against expenditures of US$7.7 billion.
Source - Reuters
