Online Reporter
Zimpapers Business Hub
Zimbabwe’s economy is projected to maintain solid growth of 5 percent in 2026, according to Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube.He said the growth will be anchored by the key sectors including agriculture, mining, manufacturing, electricity generation and wholesale and retail trade.
The domestic economy is projected to grow by a solid 6,6 percent this year, from 2 percent in 2024 when El Niño-induced drought weighed down growth.
Zimbabwe’s strong 2026 economic growth projection is expected to be underpinned by the rapidly stabilising macroeconomic conditions, with year-on-year inflation forecast to moderate to 12,7 percent by the end of 2026. It will be climbing down after averaging 17,1 percent over the fiscal year.
The Treasury expects the ZiG annual inflation rate to decline to single-digit levels in 2026, reflecting anchored inflation expectations, currency and exchange rate stability, as well as strengthened monetary-fiscal policy coordination.
The 2026 national budget broadly reflects the Government’s policy thrust under the National Development Strategy 2 (NDS 2), Zimbabwe’s next medium-term policy blueprint, which seeks to consolidate the gains of NDS 1.
Presenting the US$8,1 billion 2026 National Budget Statement at the New Parliament Building on Thursday, Minister Ncube said favourable weather conditions were expected to bolster agricultural production, while higher investment in the manufacturing sector was expected to drive industrial output.
Strong domestic demand, particularly in wholesale and retail trade, transportation and information technology, is also forecast to anchor growth.
The overall projected revenue envelope for 2026, coupled with the Government’s borrowing capacity, provides for an overall expenditure amount of ZiG290,9 billion (US$9,5 billion), which translates to 17 percent of GDP.
“Government will continue to align expenditure outlays with available resources, thus ensuring that fiscal policy supports 19 macroeconomic stability and the broader objectives of sustainable economic growth and transformation.
“This is critical to contain inflationary pressures, preserve exchange rate stability and minimise the accumulation of public debt,” he said.
