Online Reporter
Debra Matabvu, [email protected]
THE economy has remained steady during the first quarter of 2026 despite growing global uncertainty linked to escalating tensions in the Middle East, which have driven up energy prices and caused volatility in commodity markets, Information, Publicity and Broadcasting Services Minister Dr Zhemu Soda has said.
Speaking during a post-Cabinet briefing yesterday, Minister Soda said Zimbabwe’s economy has managed to absorb external shocks, largely due to stable macroeconomic conditions, a strong agricultural season and ongoing reforms aimed at improving the business environment.
“The First Quarter of 2026 was characterised by elevated global uncertainty, primarily reflecting escalating geopolitical tensions in the Middle East, which have contributed to higher energy prices, increased commodity price volatility and unfavourable global financial conditions. “The developments pose downside risks to the outlook of the domestic economy through their impact on the balance of payments, agriculture output (fertiliser shortages), inflation, exchange rate and foreign reserves build-up.
“To date, the domestic economy has remained broadly resilient, anchored by sustained macroeconomic stability and the successful rainfall season that has underpinned agricultural activity and continued policy reforms that are supporting and enhancing the ease of doing business.”
Minister Soda said the Government is projecting economic growth of about five percent this year, driven mainly by a recovery in agriculture and continued expansion in the mining sector. He added that fiscal performance remains stable, with projected revenue of US$9,4 billion against expenditure of US$9 billion, while about US$2 billion has already been collected in the first quarter.
“This performance reflects improved revenue collection and effective expenditure management,” he said.
The Government has also introduced measures to cushion citizens and key sectors from rising global costs linked to the Middle East crisis. “However, elevated fertiliser prices and higher shipping and insurance costs are increasing agricultural input costs, with potential adverse effects on crop yields, food security and overall economic activity.
Government has already removed some of the taxes on diesel, thereby helping to contain costs and inflation and support growth endeavours,” he said.
Minister Soda noted that inflation has continued to fall significantly from the high levels recorded last year.
Year-on-year inflation dropped sharply from above 90 percent in mid-2025 to 4,1 percent in January this year, before easing further to 3,8 percent in February and then rising slightly to 4,4 percent in March due to the impact of rising global oil prices. “This sustained decline highlights the effectiveness of stabilisation measures implemented by the Government. In the outlook, export performance is expected to remain relatively strong, supported by gold, other minerals including platinum group of minerals and lithium and tobacco in the medium term,” the minister said.
