Online Reporter
ZIMBABWE’s inflation rate is projected to remain at single-digit level throughout 2026, supported by strong economic growth and tight monetary controls, the International Monetary Fund (IMF) announced following the completion of its second review under the country’s 10-month Staff-Monitored Programme (SMP).
The observation by the IMF signals continued progress in Zimbabwe’s efforts to consolidate macroeconomic stability, clear external arrears and deepen re-engagement with international creditors and development partners.
According to the IMF, annual inflation measured in Zimbabwe Gold (ZiG) stood at 3,7 percent in September, reflecting a period of price stability anchored by a broadly steady exchange rate and prudent monetary policy by the Reserve Bank of Zimbabwe (RBZ).
“Economic activity continued to expand during the first half of 2026, while annual ZiG inflation remained in the low single digits,” the IMF noted in a statement on Wednesday evening, adding that real GDP growth for 2026 is projected to reach 5 percent alongside a continued surplus in the country’s current account.
Robust revenues and strong programme performance
The IMF attributed the current economic resilience to robust performance across key sectors.
The external position benefitted from strong mineral exports, favourable global commodity prices and steady remittance inflows from the diaspora.
Fiscal performance also outperformed targets.
State revenue exceeded projections, generating a stronger-than-programmed primary fiscal balance and providing the Government with scope to build fiscal buffers against future economic shocks.
All end-June quantitative targets, structural benchmarks and continuous commitments under the SMP were met.
However, the floor on protected social and priority spending was missed due to persistent execution bottlenecks — an area the IMF urged authorities to address urgently to ensure vulnerable groups feel the benefits of stabilisation.
Weather risks and strategic policy directives
Looking ahead, the IMF warned that economic growth is expected to moderate to 3,5 percent in 2027 as an anticipated El Niño-related drought weighs on agricultural production, before recovering in 2028.
To safeguard the single-digit inflation environment and cushion the economy against weather and commodity price shocks, the IMF recommended maintaining a tight monetary policy while advancing key structural measures.
It also welcomed steps toward a more transparent foreign exchange trading platform and plans for a gradual transition to a fully market-based FX system.
“Continued implementation of program commitments, alongside debt reconciliation, will help build momentum in discussions with creditors and international partners,” the IMF added.
