Zimbabwe’s economy recorded one of its most stable periods in recent years in 2025, marked by reduced price volatility and the steady performance of the ZiG currency. The improved macro-economic environment, analysts say, has set a strong foundation for further stability as the National Development Strategy 2 (NDS2) takes full effect in 2026.
At the start of 2025, annual inflation stood at 186 percent, reflecting the aftermath of the sharp ZiG depreciation in September 2024 that had fuelled significant price increases. However, the situation improved rapidly over the year, with inflation easing to 15 percent by November as monetary tightening and sustained currency stability took hold.
Businesses and consumers widely acknowledged the improvements, noting better predictability and profitability in 2025.
“As business people, we enjoyed a good year. Exchange rates were stable and we managed to make reasonable profits,” said one trader.
Another consumer highlighted growing public confidence in the ZiG.
“The ZiG was stable and readily available, and many shops accepted it because of that stability,” he said.
Economists agree that 2025 marked a key turning point.
Inflation’s dramatic decline was a major milestone, according to economist Mr Persistence Gwanyanya, who attributed it to the Reserve Bank of Zimbabwe’s tight monetary policy.
“The ZiG remained mostly stable, providing much-needed relief to both consumers and businesses,” he said.
Marondera East Legislator Dr Vimbayi Mutokonyi also praised the improved conditions.
“It was one of the most improved economic periods in recent years, especially considering that the local currency had previously been associated with instability,” she noted.
Looking ahead, optimism is growing that NDS2 will sustain economic momentum in 2026. However, stakeholders have urged the central bank to strengthen access to physical currency to ease transactions nationwide.
Some citizens raised concerns about limited circulation of ZiG notes, particularly in rural areas.
“We are appealing to authorities to increase the circulation of ZiG notes, especially in places like Murehwa where availability remains low,” said one resident.
Another added that shortages of small denominations continue to cause inconvenience.
“Access to change is still a problem. We hope the situation improves this year,” she said.
To address these challenges, the Reserve Bank has announced plans to roll out a new series of ZiG notes to replace the current ones, an initiative aimed at enhancing currency circulation and reinforcing confidence in the local currency as the country enters 2026.
