Online Reporter
Zimpapers Business Hub
ZIMBABWE’S Gross Domestic Product (GDP) grew by 2,9 percent to US$45,7 billion in 2024, up from US$44,4 billion in 2023, according to the latest figures released by the Zimbabwe National Statistics Agency (ZimStat).
While ZimStat did not provide direct US dollar figures, it applied an exchange rate of ZWG18 to US$1 to convert the GDP at current prices of ZWG822,94 billion. For 2023, the local currency-denominated GDP stood at ZWG67,5 billion, translating to US$44,4 billion using the then-prevailing exchange rate of ZWG1,52 to US$1.
Using the income approach to calculate GDP, compensation of employees emerged as the largest contributor at ZWG344,46 billion, followed by gross operating surplus at ZWG288,23 billion. The remainder comprised mixed income (ZWG143 billion), net taxes on products (ZWG47 billion), and taxes on products (ZWG48,1 billion).
At sectoral level, manufacturing led contributions to GDP at current prices, accounting for 15,6 percent — up from 15,3 percent — after recording a growth rate of 1,61 percent. The mining and quarrying sector, which posted the highest growth rate of 12,9 percent, contributed 14,3 percent to overall GDP.
The wholesale and retail trade sector, previously a dominant contributor, came third with an 11,8 percent share, following a 2,6 percent growth rate. However, two key sectors recorded negative growth.
The agriculture, forestry, and fishing sector contracted by 18,12 percent in 2024, largely due to the El Niño-induced drought. Its contribution to GDP fell to 8,7 percent from 11,5 percent the previous year.
Similarly, the accommodation and food service activities sector recorded a negative growth rate of 6,4 percent, although its contribution to GDP rose to 2,6 percent from 2,2 percent.
Commenting on the decline in the accommodation and food service sector, Tourism Business Council of Zimbabwe president, Mr Clive Chinwada, said destinations reliant on domestic tourism experienced setbacks due to a combination of factors, including reduced Government spending on Meetings, Incentives, Conferences, and Exhibitions (Mice) and travel.
However, he noted that key tourism destinations such as Victoria Falls recorded growth in accommodation uptake.
“This is because Victoria Falls relies heavily on international tourist arrivals, with Mice and leisure being key demand drivers,” said Mr Chinwada. He added that Harare remained flat, while Bulawayo experienced a marginal decline in overall activity.
Mr Wafa Kuchera, an analyst at Trigrams Investments, urged the Government to “focus on defending recent gains while also actively supporting lagging sectors to stabilise and contribute more meaningfully in the years ahead.”
“Manufacturing and mining will require increased access to grid power from Zesa and foreign currency allocations from the RBZ to modernise operations and upgrade machinery.
“The current push for local beneficiation could place both sectors on a stronger footing as related projects begin to come online,” he said.
Mr Kuchera also noted signs of recovery in agriculture, attributed to a favourable rainy season, but stressed the urgent need to prioritise climate resilience. He called for accelerated investment in water capture and irrigation technologies across all farming scales, including smallholder operations.
“Government can support adoption through tax incentives for irrigation equipment, while private capital can be mobilised for large-scale water infrastructure,” he said.
Economic analyst, Mrs Gladys Mutsopotsi Shumbambiri echoed similar sentiments, stating that the sharp decline in the agriculture sector “underscores the urgency of investing in climate-smart agriculture, irrigation infrastructure, and rural financing mechanisms to shield the sector from climate shocks and ensure its resilience.”
On the performance of consumptive sectors, Mr Kuchera said ongoing efforts to streamline regulations should support a natural recovery in the current year.
“However, the continued over-reliance on compensation of employees is an issue that requires attention. As the economy matures, there is an urgent need to shift labour from primary production into higher-value roles — enabling people to add more value per unit of labour across goods and services,” he said.
Mrs Shumbambiri noted that the dominance of employee compensation in GDP points to several important dynamics.
“Firstly, the large share of employee compensation suggests that formal employment — particularly in Government services, education and formal retail — remains a cornerstone of national output. It reflects the weight of the public sector and established industries in sustaining economic activity.
“Secondly, the strong gross operating surplus indicates robust profit generation by firms, especially in capital-intensive sectors such as mining, retail and manufacturing. However, this may also reflect inflationary pressures or exchange rate effects, rather than pure productivity growth,” she observed.
She said that a critical takeaway was the under-representation of the informal sector in GDP calculations.
