Zimbabwe lifts 2025 Economic growth forecast to 6.6% on strong agriculture and mining

By: Chidozie Nwali

Zimbabwe’s government has announced a significant upward revision of its economic growth forecast for 2025, now projecting a robust 6.6% growth, a notable increase from earlier 6% projection. The updated outlook is driven by a combination of a favorable agricultural season, strong performance in the mining sector, and ongoing government policy reforms.

The new forecast, confirmed by Finance Minister Mthuli Ncube during a mid-year budget review, signals a strong recovery following a slowdown in 2024, which was impacted by a severe drought.

“The higher projection is on account of more than anticipated output in the agricultural sector, particularly tobacco… and mining sector growth buoyed by high commodity prices, notably gold,” Finance Minister Mthuli Ncube told an economic conference.

A strong recovery in the agricultural sector, particularly in key crops like maize and tobacco, is a major contributor to the revised forecast. This follows improved weather conditions, which have helped to reverse the declines experienced during the recent drought.

The gold-rich southern African country’s mining industry continues to be a key driver of economic growth. The forecast is bolstered by new investments and a recovery in gold and lithium production. Mining accounts for a significant portion of Zimbabwe’s export earnings.

The government’s fiscal and monetary policies, including the introduction of a new gold-backed currency (ZIG), have been credited with improving exchange rate stability and controlling inflation.

However, while the new projection is a positive sign, analysts caution that the country still faces challenges. The need to address a persistent fiscal deficit, manage public debt, and attract more foreign investment remains crucial for long-term sustainable growth.