Zimbabwe’s economy could grow faster than previously forecast this year, supported by lower inflation, strong mining performance and continued economic reforms, according to the World Bank.
World Bank country manager for Zimbabwe Eneida Fernandes said improved macroeconomic fundamentals had created conditions for stronger-than-expected economic growth.
“Zimbabwe’s economy is stronger than it has been in a very long time,” Fernandes told journalists recently.
“I think there’s a lot of policies that have been put in place. We talked quite a bit about the work in the presidential programme on improving the business environment and we’re seeing clear growth in the agribusiness sector, manufacturing, but also mining as well, with the costs of gold and lithium going up.”
Mining has remained one of Zimbabwe’s strongest-performing sectors, supported by firm international gold prices and sustained investment in lithium projects, while agriculture has recovered following favourable rainfall. Manufacturing has also shown signs of improvement as macroeconomic conditions continue to stabilise.
Fernandes said prudent economic management had helped contain inflation and improve business confidence, creating a stronger platform for growth.
“But also, the diligence of the government in managing the economy. Inflation is down, there’s great plans for energy upgrades in the country, all that leading to growth that we see coming this year, maybe even higher than what we had originally predicted,” she said.
The World Bank previously projected Zimbabwe’s economy would expand by six percent this year, driven by recovery in agriculture, mining and continued macroeconomic stability.
Fernandes also commended the government’s commitment to implementing economic reforms through its engagement with international financial institutions.
“The government of Zimbabwe has made a big commitment in working with the Monetary Fund and with the World Bank and some clear policies that are going to be undertaken this year under the Staff Monitored Programme with the IMF, but also in all of our work on taxes and our public finance management with support from the bank,” she said.
She urged authorities to maintain the reform momentum to sustain economic gains.
“I would just say continue doing more of what you’re already doing and we really congratulate the government on what we’ve achieved so far,” Fernandes said.