Overview of the economy
Vision 2030
Consistent with the collective aspirations and determination of the people of Zimbabwe to achieve an Empowered and Prosperous Upper Middle-Income Society by 2030, the Second Republic launched Vision 2030 to chart a new transformative and inclusive development agenda. It is the pursuit of this vision which will deliver broad based transformation, new wealth creation and expanding horizons of economic opportunities for all Zimbabweans, with no one left behind.
Economic growth trajectory in Zimbabwe is therefore being guided by this Vision, which seeks to move the country, ‘Towards a Prosperous and Empowered Upper Middle-Income Society By 2030, with Job Opportunities and a High Quality of Life for Its Citizens’.
Key aspirations of Zimbabwe Vision 2030, will be realized through the following Strategic Pillars:
- Governance
- Macroeconomic Stability and Financial Re-engagement
- Inclusive Growth
- Infrastructure and utilities
- Social Development
Vision 2030 is guiding the implementation of the current economic blueprint, National Development Strategy1:2021 – 2025 and its successor National Development Startegy2: (2026 – 2030).
National Development Strategy1: 2020 – 2025
The National Development Strategy 1: 2021-2025 (NDS1) is first 5-year Medium Term Plan aimed at realising the country’s Vision 2030. The Strategy will build on the success of the TSP, notably entrenching macroeconomic stability, necessary for economic recovery and growth, and conferring new opportunities for wealth creation, innovation and enterprise development.
The NDS1 is the culmination of extensive and structured stakeholder consultations through fourteen (14) Thematic Working Groups, and the consolidation of the policy proposals and strategies arising from extensive, across the board stakeholder consultations.
The objectives of The NDS1 are to: –
- Strengthen macroeconomic stability, characterised by low and stable inflation, as well as exchange rate stability.
- Achieve and sustain inclusive and equitable Real GDP growth.
- Promoting new enterprise development, employment, and job creation.
- Strengthen Social Infrastructure and Social Safety nets.
- Ensure sustainable environmental protection and resilience.
- Promote Good Governance and Corporate Social investment; and
- To modernise the economy through use of ICT and digital technology.
Through the broad-based stakeholder consultative process, the NDS1 National Priorities were identified as:
- Economic Growth and Stability.
- Food Security and Nutrition.
- Governance.
- Moving the Economy up the Value Chain & Structural Transformation.
- Human Capital Development.
- Environmental Protection.
- Climate Resilience and Natural Resource Management.
- Housing Delivery; ICT and Digital Economy.
- Health and Well-being.
- Transport, Infrastructure & Utilities.
- Image building and International Engagement and Re-engagement.
- Social Protection.
- Youth, Sport and Culture and Devolution.
Recent Economic Performance
The Zimbabwe economy is projected to register a 4% GDP growth in 2022 and a further 3.8% in 2023. Preliminary indications now point to an even higher growth for both years on account of the following:
- 2022 outturns from mining, financial services, communication and tourism are showing higher growth rates than earlier estimated.
- Similarly, for 2023, growth is expected to remain strong on account of a better than anticipated agriculture season following the normal to above normal rainfall. The risk of lower electricity supply to be lessened following the successful synchronization of Hwange 7, improved water levels in Kariba as well as the rapid adoption of solar energy projects by the private sector. Hwange 8 is expected to come on stream during the second half, adding an additional 300MW to the grid.
GDP Growth Rates by Industry
| 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|
| Actual | Actual | Estimate | Projection | |
| Agriculture | 4.1 | 17.5 | -14.1 | 4.3 |
| Mining and quarrying | 0.2 | 5.9 | 10 | 11.1 |
| Manufacturing | -18.5 | 1.2 | 2.6 | 2.7 |
| Electricity | -6.3 | 33.9 | 14.3 | 4.2 |
| Water supply | 1.9 | 12.7 | 4.4 | 4.2 |
| Construction | 4.9 | 3.5 | 10.5 | 5.8 |
| Wholesale and retail trade | -10.1 | 8.1 | 4.3 | 0.5 |
| Transportation and storage | -30.2 | 8.5 | 5.9 | 2.4 |
| Accommodation | -61 | 38.5 | 56.3 | 13.9 |
| Communication | 8.9 | 9.8 | 8.3 | 3.7 |
| Finance and insurance | 11.9 | 3 | 4 | -0.2 |
| Real estate activities | 0.8 | 4.1 | 4.6 | 3.1 |
| Professional activities | -9.4 | -3.1 | 1.6 | 1.6 |
| Administrative activities | -35.4 | 14.6 | 0.8 | 0 |
| Public administration | 1.7 | 5.3 | 4 | 0.2 |
| Education | -26.5 | 5.8 | 4.8 | 2.3 |
| Human health activities | 15.2 | 18.6 | 1.3 | 2.9 |
| Arts and entertainment | -30.6 | 14 | 12.3 | 11 |
| Other service activities | -24.6 | -2.8 | 2.2 | 2.2 |
| Domestic Services | -3.1 | 2.3 | 2.2 | 2.2 |
| Overall GDP Growth | -7.8 | 8.5 | 4 | 3.8 |
The economy continues to be impacted by the overlapping and inter-linked global crises such as the COVID-19 pandemic, the geopolitical crisis in Eastern Europe and climate change which are all constraining economic activity.
These multiple crises have also negatively affected the stability of the economy, especially production, prices, and exchange rate.
The government has been able to implement adaptive policies and measures to address the challenges by being proactive in the management of COVID-19 and implementation of import substitution measures to counter Food, Fuel and Fertilizer challenges. Specific interventions include:
- Support towards production of strategic crops such as wheat and maize;
- scaling up valued addition and beneficiation programmes;
- removal of fuel levies, among others in order to reduce high energy costs
Balance of Payments
The country’s external sector remains relatively strong, evidenced by a surplus current account balance of US$305 million in 2022.
Total foreign currency receipts amounted to US$11.6 billion while payments were at US$9 billion.
The sector has benefitted from resilient remittance inflows and strong export performance largely buoyed by favourable commodity prices for key exports.
Latest data to Mid-March 2023 indicate that foreign currency receipts increased by 32% compared to the same period last year.
MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT