Zimbabwe’s economy is expected to grow by 5 percent in 2026 after the World Bank revised its outlook upward, from an earlier forecast of 4.6 percent, citing a rebound in agriculture, increased investment in key extractive industries and improved macroeconomic stability.
In its Global Economic Prospects report released in January 2026, the multilateral lender also upgraded its estimate for 2025, now expecting the economy to expand by 6.6 percent, compared to the 6 percent growth projected in June 2025.
The improved outlook is largely attributed to a strong rebound in agriculture and increased investment in extractive sectors such as gold, lithium, iron and steel, which have driven higher levels of industrial activity.
“Zimbabwe’s economic growth accelerated sharply in 2025, supported by a recovery in agriculture and robust investment in extractive industries that boosted industrial production,” the World Bank noted.
Inflation, which has long challenged the economy, is forecast to ease significantly, with single-digit levels expected by early 2026. This decline is being supported by tighter fiscal and monetary policies, as well as exchange rate stability following the introduction of the Zimbabwe Gold (ZiG) currency.
The government is also aiming to narrow the budget deficit to about 0.2 percent of GDP in 2026, reflecting efforts to strengthen fiscal discipline.
The World Bank’s 5 percent growth projection for 2026 is in line with Treasury’s own expectations and is underpinned by solid performance in agriculture, mining, construction and retail, alongside a stable currency and favourable global commodity prices.
Looking further ahead, the World Bank has maintained its forecast of 5 percent economic growth for Zimbabwe in 2027. Regionally, Sub-Saharan Africa is projected to grow 4.3 percent in 2026 and 4.5 percent in 2027, slightly below Zimbabwe’s expected expansion.
Overall, the World Bank’s upgraded forecast signals a positive turn for Zimbabwe’s economy, offering opportunities for investment and industrial growth while highlighting the importance of structural reforms and stable macroeconomic policies.
