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Zimbabwe maintains 5% growth projection
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Zimbabwe's Minister of Finance, Economic Development and Investment Promotion, Mthuli Ncube, says the country remains on course to achieve around 5% economic growth by the end of 2026 despite increasing global economic uncertainty linked to tensions in the Middle East.
Presenting the First Quarter 2026 Economic Developments and Outlook Report to Cabinet on Tuesday, Ncube said the global economy was currently facing heightened uncertainty marked by rising energy prices, commodity price volatility and tighter global financial conditions.
"Economic growth is still projected to moderate around 5% in 2026, reflecting anticipated strong agriculture sector recovery and mining sector growth underpinning overall growth of the economy," Ncube said.
However, he warned that rising fertiliser prices, together with increasing shipping and insurance costs, were driving up agricultural production expenses, potentially affecting crop yields, food security and broader economic activity.
Ncube said Zimbabwe's economy had so far remained relatively resilient due to sustained macroeconomic stability, a successful rainfall season that boosted agricultural production, and ongoing policy reforms aimed at improving the ease of doing business.
According to the minister, commodity markets during the first quarter of 2026 experienced renewed upward pressure and heightened volatility largely due to escalating geopolitical tensions that disrupted global energy supply chains.
He noted that increasing production and transportation costs were contributing to inflationary pressures, although authorities were implementing measures to protect jobs, sustain livelihoods and cushion citizens from rising prices.
"Fiscal developments in 2026 have so far been anchored on continued revenue recovery and expenditure containment, with total revenues projected to reach US$9.4 billion against a total expenditure of US$9.0 billion," said Ncube.
Looking ahead, the government expects export performance to remain strong, driven mainly by gold, platinum group minerals, lithium and tobacco exports in the medium term.
Presenting the First Quarter 2026 Economic Developments and Outlook Report to Cabinet on Tuesday, Ncube said the global economy was currently facing heightened uncertainty marked by rising energy prices, commodity price volatility and tighter global financial conditions.
"Economic growth is still projected to moderate around 5% in 2026, reflecting anticipated strong agriculture sector recovery and mining sector growth underpinning overall growth of the economy," Ncube said.
However, he warned that rising fertiliser prices, together with increasing shipping and insurance costs, were driving up agricultural production expenses, potentially affecting crop yields, food security and broader economic activity.
According to the minister, commodity markets during the first quarter of 2026 experienced renewed upward pressure and heightened volatility largely due to escalating geopolitical tensions that disrupted global energy supply chains.
He noted that increasing production and transportation costs were contributing to inflationary pressures, although authorities were implementing measures to protect jobs, sustain livelihoods and cushion citizens from rising prices.
"Fiscal developments in 2026 have so far been anchored on continued revenue recovery and expenditure containment, with total revenues projected to reach US$9.4 billion against a total expenditure of US$9.0 billion," said Ncube.
Looking ahead, the government expects export performance to remain strong, driven mainly by gold, platinum group minerals, lithium and tobacco exports in the medium term.
Source - onlne
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