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Tapiwanashe Mangwiro
Senior Business Reporter
Zimbabwe’s economy remained resilient in the third quarter of 2024, after the country’s gross domestic product (GDP) grew by 2,37 percent quarter-on-quarter, official figures show.
According to the Zimbabwe National Statistics Agency (ZimStat), at ZiG105,1 billion the quarterly GDP growth built on the ZiG102,6 billion realised in the prior quarter, at constant prices.
ZimStat attributed the growth to robust performances across several key sectors, as electricity, gas and steam, surged by an impressive 22,2 perfect in the quarter under review.
Growth in accommodation and food services followed closely after a 19 percent increase, while water supply recorded a 9,9 percent growth.
Wholesale and retail trade maintained their position as the largest contributors to GDP, accounting for 18,02 percent of the total value for the third quarter.
Mining and quarrying, a traditional pillar of Zimbabwe’s economy, expanded by 6,4 percent, underscoring its steady contribution to national output.
ZimStat said, “Mining’s share rose to 15,15 perfect, reflecting its strategic importance, while manufacturing contributed 12,50 perfect, slightly down from the previous quarter.”
Zimbabwe’s real GDP growth rate is expected to decline to 2 percent in 2024, down from 5,3 percent in 2023 due to a number of factors, including drought, low mineral prices, and some macroeconomic challenges.
Economist Gladys Shumbambiri-Mutsopotsi commended the growth, highlighting the mining sector’s resilience.
“The steady expansion in mining reflects not only global commodity price trends but also the sector’s ability to adapt to local operational challenges,” she said.
Ms Shumbambiri-Mutsopotsi also highlighted the surging electricity sector, despite demand outstripping supply, as a critical enabler of broader economic activity.
“An over 22 perfect growth in electricity generation is a game-changer, ensuring reliable power supply for industries and boosting investor confidence.”
However, some sectors experienced subdued performance.
Agriculture, fishing and forestry’s contribution fell to 9,07 perfect of GDP in the quarter under review from 9,90 perfect in the prior quarter.
The decline in agriculture was expected, as the third quarter is a period of preparation for the summer cropping season, which follows the winter season.
Similarly, the construction sector’s share declined to 2,85 perfect.
The tourism and hospitality industry, which entails accommodation and food services, demonstrated remarkable recovery after registering a 19 percent growth, attributed to increased domestic and international travel.
The sector’s revival signals the potential for further diversification of Zimbabwe’s economic base.
Ms Shumbambiri-Mutsopotsi emphasised the need to sustain the momentum in high-growth sectors while addressing challenges in lagging industries.
“Targeted investments in agriculture and construction could balance the growth trajectory and ensure inclusivity,” she advised.
ZimStat noted that quarterly GDP figures remained subject to revisions, with updated data and methodology refinements potentially influencing future adjustments.
As Zimbabwe closes out 2024, the latest figures reflect cautious optimism.
While growth in key sectors inspires confidence, the broader economy’s performance will depend on progress in addressing structural challenges and sustaining sectoral gains.
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