The World Bank has revised Zimbabwe’s economic growth prospects downwards, with the international institution now expecting the country’s economy to expand by 4.6 percent in 2026, a slight reduction from the initial five percent forecast in January.
The adjustment reflects mounting geopolitical pressures, particularly tensions in the Middle East, alongside persistent structural challenges and rising debt-servicing obligations that continue to weigh on the country’s economic trajectory.
While the new forecast remains marginally above the 4.5 percent growth projected by the African Development Bank, it falls short of the five percent forecasts maintained by both the Zimbabwe government and the International Monetary Fund.
The World bank noted that growth is expected to decelerate more sharply this year compared to the strong 7.5 percent recorded in 2025, which was underpinned by robust performances in agriculture and mining.
Looking ahead, the economy is projected to grow at an average of 4.2 percent in 2027 and 4.1 percent in 2028.
Inflation, however, is forecast to remain contained within single digits, closing the year at around 6.7 percent.
This outlook is anchored on tight monetary policy and improved stability in the foreign exchange market.
Recent data already points to easing price pressures, with annual ZiG inflation dropping to 4.1 percent in January, the first single-digit reading for the local currency since 1997.
Regionally, the Bretton Woods institution expects growth in Sub-Saharan Africa to hold steady at 4.1 percent in 2026, though downside risks are increasing.
In Eastern and Southern Africa, growth is projected to edge up slightly from 3.7 percent in 2025 to 3.8 percent in 2026, before strengthening to an average of 4.1 percent in subsequent years. – TML