The World Bank has updated its economic growth forecast for Zimbabwe, predicting a 5% expansion for the country in 2026, an increase from its earlier estimate of 4.6%.
According to the latest Global Economic Prospects report, released in January 2026, Zimbabwe’s GDP growth for 2025 is now expected to reach 6.6%, surpassing the 6% forecast made in June 2025.
The World Bank attributes this growth surge to a strong recovery in the agricultural sector and significant investments in key extractive industries, including gold, lithium, iron, and steel, which helped boost industrial production.
“Growth in Zimbabwe sharply increased in 2025, driven by a rebound in agriculture and investments in the extractive industries, which helped lift industrial output,” the World Bank said in its report.
Inflation, a long-standing issue for Zimbabwe, is expected to decrease substantially, potentially reaching single-digit levels by early 2026. This is due to tighter fiscal and monetary policies, as well as the relative stability of the exchange rate following the introduction of the Zimbabwe Gold (ZiG) currency.
The government is also targeting a reduction in the budget deficit to approximately 0.2% of GDP in 2026, reflecting greater fiscal discipline.
Zimbabwe’s projected 5% growth aligns with the country’s Treasury’s own forecast for the year. This is supported by strong performances in sectors such as agriculture, mining, construction, and retail, along with a stable currency and favorable global commodity prices.
Looking ahead to 2027, the World Bank’s forecast for Zimbabwe’s GDP growth remains unchanged at 5%.
Meanwhile, Sub-Saharan Africa is expected to see steady growth, with projections of 4.3% in 2026 and 4.5% in 2027. This improvement is attributed to rising investment and exports, though it is contingent on the global environment remaining stable and improvements in security in conflict-affected regions.
The report suggests that monetary policies across Sub-Saharan Africa are likely to remain cautious, as governments balance inflation control with efforts to promote economic growth. Fiscal deficits are expected to decrease over time as countries implement fiscal consolidation measures.
In 2026, government interest payments across Sub-Saharan Africa are projected to remain significantly higher than the 2010-2019 average, due to the shift toward less favorable loan terms and the lingering effects of record debt accumulation after the COVID-19 pandemic.
