The economy registered a sharp rebound in the second quarter of 2025, with gross domestic product (GDP) rising by 7,01 percent compared to the previous quarter, according to the Zimbabwe National Statistical Agency (ZimStat).
The quarterly GDP figure for the second quarter of 2025 was ZiG18,8 billion, up from ZiG17,5 billion reported in the first quarter,” ZimStat said in its latest quarterly GDP report. Year-on-year, output grew by 11,04 percent, nearly doubling the pace recorded in the first three months of the year, which was 5,10 percent.
This data marks Zimbabwe’s best quarterly performance since before the pandemic shocks of 2020, underscoring the resilience of mining, agriculture, and manufacturing amid a volatile global backdrop.
ZimStat’s report showed that mining and quarrying accounted for 14,9 percent of total output in the quarter, narrowly ahead of manufacturing at 14,6 percent. Agriculture contributed 12,2 percent, while wholesale and retail trade and financial services added 11 percent and 10,3 percent respectively.
The mining sector has been buoyed by firm global commodity prices.
Projects such as the steel manufacturing plant owned by Dinson iron and Steel Company, which is now ramping up production are also adding to the GDP growth.
Local gold miners also reported record quarterly deliveries to Fidelity Gold Refiners, with output exceeding 11 tonnes in the second quarter.
“These mining results highlight that Zimbabwe is increasingly positioned as a strategic supplier of minerals critical to the global energy transition,” said Raymond Madziva, a banker. “For the financial sector, this kind of performance reduces credit risk and strengthens the case for resource-backed lending.”
Manufacturing also recorded strong growth, supported by rising capacity utilisation in food processing, cement production, and textiles. The Government’s import-substitution push has led to higher domestic demand for locally produced goods, particularly in the construction and retail supply chains.
Agriculture, traditionally the backbone of the economy, benefited from improved rainfall patterns and government-backed input support schemes for maize and wheat farmers. Analysts noted that stronger links between farming and agro-processing industries helped sustain value-added growth beyond the farm gate.
Economists hailed the performance as evidence that recent policy interventions were beginning to yield results.
“This 7 percent growth rate is not just a number; it reflects an economy that is finding its rhythm,” said Gladys Shumbambiri-Mutsopotsi, an economist.
“The mining deals signed this year, combined with increased agricultural productivity, are helping to stabilise growth. It also proves that despite challenges, the policy thrust towards industrialisation and beneficiation is gaining traction.”
Her comments align with the Government’s industrial policy strategy, which emphasises the beneficiation of minerals such as platinum and lithium, alongside expanding local manufacturing capacity. Officials argue that these efforts are beginning to reduce reliance on imports while stimulating job creation.
Bankers and industry leaders stressed the importance of consolidating these gains into long-term growth.
“Financial institutions are seeing more viable projects on their books,” Mr Madziva said.
“The positive GDP trend gives confidence to lenders and investors, both local and foreign. It also signals that Zimbabwe’s risk profile is gradually improving, which is vital for unlocking cheaper lines of credit.”
ZimStat’s upbeat report provides the Government with an economic boost as it seeks to consolidate reforms ahead of the 2026 budget. Policymakers have signalled that new measures will focus on expanding renewable energy generation, streamlining the investment climate, and deepening beneficiation in platinum and lithium value chains.
Ms Shumbambiri-Mutsopotsi argued that the second quarter’s growth profile demonstrated Zimbabwe’s ability to chart its own development course despite external headwinds. She added, “This momentum shows that Zimbabwe can emerge as one of Africa’s fastest-growing economies if it continues to invest in productive sectors.”
As Mr Madziva put it, “The numbers tell a story of resilience. This is a country with untapped potential, and Q2 2025 has shown a glimpse of what’s possible if we keep the momentum.”
Economist Tinevimbo Shava agreed but cautioned that sustaining momentum would require discipline. “The numbers are encouraging, but they should not lull us into complacency,” he said. “Structural issues remain, such as energy supply, infrastructure gaps, and the need for stronger governance in state-owned enterprises. If these are tackled, then the 11 percent year-on-year quarterly growth we are seeing could be replicated into 2026 and beyond.”
Another economic analyst Walter Mandeya of Trigrams Investments said while growth in national GDP is welcome, there is need to make sure it has a positive impact on everyday lives of ordinary Zimbabweans.
“This is a positive development, but it must cascade further to individuals, the ordinary Zimbabweans.
“A much better picture is when this GDP growth rate leads to job creation, stability in consumer prices, or the availability of basic goods,” said Mr Mandeya.
