Online Reporter
Zimpapers Business Hub
ZIMBABWE’s Gross Domestic Product (GDP), at current prices, rose by 11,2 percent in the first quarter of 2025 to ZiG335 billion (US$12,5 billion), from ZiG299 billion (US$11,2 billion) in the last quarter of 2024, driven by agriculture, electricity supply, information and communication, and finance and insurance activities.
Quarterly GDP refers to the measurement of a country’s economic output, specifically the total value of goods and services produced, over three months.
It provides a more frequent snapshot of economic activity compared to annual GDP, allowing for a better understanding of short-term trends and fluctuations.
GDP at current prices, also known as nominal GDP, is the total value of goods and services produced within a country’s borders, measured at the prevailing market prices of that period.
The country’s overall GDP was rebased to ZiG168,5 trillion, equivalent to US$44,4 billion, up from the initial estimate of ZiG133,7 trillion (US$35,2 billion).
The adjustment reflects expanded coverage of economic activity, particularly in the informal sector and the inclusion of new business entities that have emerged since the last base year in 2019.
According to the Zimbabwe National Statistics Agency (ZimStat), the quarterly GDP figures provide an indication of changes in economic activities based on developments during the period under review.
The statistics tally with Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube’s projections, after he told legislators, while presenting the 2025 Mid-Term Policy Review on Thursday, that the economy is expected to achieve the targeted growth of 6 percent.
“This follows the post-drought recovery in agriculture, particularly in maize and tobacco production, increased investment in the mining sector targeting minerals such as gold, lithium and iron mining, as well as improved economic stability,” he said.
Despite global economic uncertainties that could negatively impact the country’s export receipts, the economy is expected to achieve the growth target for the year.
Presenting the GDP figures earlier last week, ZimStat manager, national accounts, Mr Grown Chirongwe said during the quarter under review, industries that registered growth included agriculture — 18,8 percent, electricity supply — 6,1 percent, information and communication — 4,3 percent, and finance and insurance activities — 4,3 percent.
During the same quarter, mining and quarry declined by 21,6 percent, accommodation and food services fell by 24,1 percent, while water supply dropped by 12,3 percent.
Mr Chirongwe said the five industries that were at the top in contributing to GDP in the first quarter of 2025 were manufacturing, at 15 percent; followed by mining and quarrying at 12,4 percent; while agriculture recorded 11,7 percent.
“Wholesale and retail trade stood at 11,6 percent, while finance and insurance accounted for 11,2 percent,” he said.
The Zimbabwe National Chamber of Commerce, one of Zimbabwe’s biggest and most influential business lobby groups, estimates the sector to constitute about 64,1 percent of the domestic economy.
The Government is actively encouraging the formalisation of its informal sector through initiatives aimed at increasing tax compliance, providing access to formal financial services and offering legal protection.
Tinaye Agere