The Zimbabwean government is forecasting a strong economic rebound in 2025 as the country recovers from an El Niño-induced drought that has affected agricultural production, increased demand for imports, and strained state finances.
Presenting the 2025 National Budget at the New Parliament Building in Mount Hampden, Harare, on Thursday, November 28, Finance Minister Mthuli Ncube projected a 6% expansion in Gross Domestic Product (GDP) for 2025, a significant increase from the 2% growth expected in 2024. Ncube had previously anticipated a 5.3% growth for 2024. He said:
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The domestic economy is still projected to record a growth of 2% in 2024. However, the agriculture sector, which was initially projected to contract by -21%, is now expected to contract by -15% on account of better than anticipated output on wheat and dairy.
This improvement will, however, be offset by lower performance in mining and manufacturing sectors, maintaining the overall growth forecast of 2%.
In the outlook, economic growth is now projected at 6% in 2025, slightly below the initial forecast of 6.5%.
The projected strong economic performance is expected to emanate from the recovery in the agriculture sector, which is poised to grow by 12.8%, electricity generation by 10.6%, information technology by 9.9% and by mining 5.6%.
The anticipated La-Nina weather phenomenon, usually associated with normal to above-normal rainfall, is going to be the major driver of growth in agriculture and electricity generation.
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Ncube said the 2025 economic growth projections are underpinned by normal to above-normal rainfall which is expected to result in increased agricultural production, a stable exchange rate and low inflation providing a conducive doing business environment, and tight fiscal and monetary policies.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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Zimbabwe's economy is expected to grow by 6% in 2025, which is higher than the 2% growth expected in 2024. This is because the agriculture sector is doing better. The country is also expecting good rainfall, which will help with farming and electricity generation. The Finance Minister thinks the economy will be good in 2025 because of these factors. This is good news for Zimbabwe's economy!

Mthuli Ncube Projects 6% GDP Growth For Zimbabwe In 2025

The International Monetary Fund has revised Zimbabwe’s 2020 economic growth forecast which it had initially placed at 2.7% down to 0.8%, The Zimbabwean reports.
The global money lender cited the growing socio-economic problems Zimbabwe is facing as its reason for the forecast downgrade.
A report by the IMF on Zimbabwe said:
<blockquote>With another poor harvest expected, growth in 2020 is projected at near zero, with food shortages continuing
..there was a need to address governance and corruption challenges, entrenched vested interests, and enforcement of the rule of law to improve the business climate and support private sector-led inclusive growth.
Such efforts would be instrumental to advance re-engagement efforts with the international community and mobilise the needed support,</blockquote>
Zimbabwe is going through a dire economic meltdown that has seen inflation soar to over 450% for the first time since 2008.
More: <a href="https://www.thezimbabwean.co/2020/03/zimbabwe-sa-now-have-the-same-growth-forecast-for-2020-from-the-imf/">The Zimbabwean </a>
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