Second Quarter GDP up 3.1 percent as economy stays on growth path

THE economy has remained on a positive growth trajectory in the second quarter of 2026, with Gross Domestic Product expanding by 3.1 percent year-on-year and 5.8 percent quarter-on-quarter, with manufacturing, mining and quarrying remaining the biggest contributors, the Zimbabwe National Statistics Agency (Zimstat) has revealed.

Presenting the Second Quarter 2026 GDP estimates on Monday, Zimstat said the figures provide an indication of changes in economic activity based on developments during the quarter.

“The quarterly GDP figure for the second quarter of 2026 was ZWG 457.3 billion. At constant prices, the quarterly GDP figure for the second quarter of 2026 was ZWG 412.4 billion,” Zimstat said.

The agency said GDP at current prices for Q1 2026 was ZWG 424.6 billion, while at constant prices it was ZWG 389.7 billion.

The 5.8 percent q/q growth marked a strong rebound from a contraction of 3.5 percent in Q1 2026, signalling renewed momentum across key sectors.

Mining and quarrying led the recovery, growing 33.3 percent q/q, followed by accommodation and food services at 5.1 percent, water supply, sewerage, waste management and remediation activities at 4.7 percent, wholesale and retail trade at 4.5 percent, and agriculture, fishing and forestry at 4.0 percent.

Other notable q/q performers included other services at 3.8 percent, construction at 3.3 percent, human health at 2.8 percent, transport and storage at 2.6 percent, and arts and entertainment at 2.1 percent.

“On a year-on-year basis, the top five growing industries were water supply at 12.2 percent, human health and social work at 9.8 percent, real estate at 8.2 percent, transportation and storage at 7.8 percent, and agriculture, fishing and forestry at 7.3 percent.

“Financial and insurance activities grew 7.0 percent, other services 6.3 percent, professional, scientific and technical activities 6.2 percent, information and communication 4.8 percent, arts and entertainment 4.7 percent, and manufacturing 3.3 percent,” reported Zimstat.

In terms of contribution to GDP at constant prices in Q2 2026, manufacturing remained the largest contributor at 16.2 percent, followed by mining and quarrying at 15.4 percent, agriculture at 12.0 percent, wholesale and retail trade at 10.8 percent, and financial and insurance activities at 6.1 percent.

Public administration contributed 4.7 percent, real estate 4.2 percent, accommodation and food services 4.0 percent, and transportation and storage 3.7 percent.

Zimstat said the compilation of quarterly GDP figures is guided by the 2008 System of National Accounts.

The production approach was used to estimate quarterly GDP at current and constant prices using the proportional benchmarking method, with estimates benchmarked to annual national accounts. The base year is 2025.

Data sources included surveys conducted by Zimstat, such as the Quarterly Employment Inquiry, administrative data from ZIMRA and Government, and industry-specific indices computed by Zimstat.

Zimstat said quarterly GDP estimates are subject to revisions in line with its Statistics Revision Policy.

Revisions are mainly due to changes in methodology, availability of updated source data, benchmarking and other factors. Some industries were revised due to new information.

The year-on-year growth rate moderated from 6.5 percent in Q1 2026 to 3.1 percent in Q2 2026, reflecting base effects and normalisation after strong growth in 2025. The q/q rebound, however, suggests the economy remains resilient, with mining, agriculture, manufacturing, trade and services continuing to drive activity.

The growth in mining, agriculture and water supply is particularly important for Zimbabwe’s export earnings, food security and industrial capacity.

The Q2 2026 GDP release comes as Government pursues Vision 2030 and the National Development Strategy 2, which prioritise industrialisation, mining beneficiation, agriculture recovery and infrastructure development.

Sustaining the current momentum will require stable macroeconomic policies, increased investment and improved production across key sectors.