RBZ, economists convene to review state of economy, 2026 outlook

THE state of Zimbabwe’s economy comes under the spotlight today as Reserve Bank of Zimbabwe (RBZ) officials and economists meet in Bulawayo to assess current performance and interrogate prospects during the State of the Economy and 2026 Economic Outlook engagement.

The high-level meeting comes at a defining moment for the economy, which is now firmly on a strong recovery trajectory anchored on improving macroeconomic stability, restored policy credibility and a decisive break from the inflation volatility that characterised nearly three decades.

Zimbabwe has registered a historic economic milestone, with annual inflation falling into single digits for the first time since 1997 — effectively ending 29 years of persistent price instability and marking a major turning point in the country’s macroeconomic reform journey.

Official figures for January 2026 show year-on-year ZiG inflation plunging to just 4,1 percent, down sharply from 15 percent in December 2025. The dramatic deceleration reflects the impact of sustained monetary tightening, improved fiscal discipline and growing confidence in the gold-backed Zimbabwe Gold (ZiG) currency.

The improved outlook has been underpinned by the introduction of ZiG, which has played a central role in anchoring exchange rate stability, curbing speculative behaviour and strengthening the monetary policy framework.

On a month-on-month basis, ZiG inflation stood at 0,0 percent in January 2026, easing from 0,2 percent the previous month, meaning average prices in local currency remained unchanged. This rare price stability signals strengthening control over liquidity growth and more effective coordination between fiscal authorities and the central bank.

The stability underscores growing discipline in liquidity management, improved synchronisation of fiscal and monetary policy, and rising public confidence in the domestic currency — key pillars in rebuilding economic fundamentals.

The central bank has maintained a tight monetary stance, keeping interest rates positive in real terms, a critical condition for savings mobilisation, investment confidence and financial sector stability. Analysts say this has helped re-anchor inflation expectations and reinforce the credibility of policy reforms.

Today’s engagement is expected to interrogate how these hard-won gains can be consolidated and transitioned into sustained expansion, with discussions likely to focus on exchange rate management, liquidity conditions, production trends and the role of structural reforms in supporting long-term growth.

Economists note that maintaining policy consistency, strengthening productivity across key sectors such as mining, agriculture and manufacturing, and entrenching fiscal discipline will be essential to translate macroeconomic stability into broad-based growth, job creation and improved living standards.

The Bulawayo meeting, therefore, comes at a pivotal moment, as policymakers and experts seek to shift the economy from stabilisation to durable recovery, with the 2026 outlook expected to provide a clearer signal on the next phase of Zimbabwe’s economic reform and growth trajectory.

RBZ Deputy Governor Dr Innocent Matshe, who is representing RBZ Governor Dr John Mushayavanhu, Africa Economies Development Strategies (AEDS) executive director Professor Gift Mugano, AEDS chief economist Pretty Nyathi, Dr Goddard, Professor Laurine Chikoko and Dr Shepherd Chawira are lined up as speakers.

More to follow…