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 economy faced the worst drought in 40 years in 2024. Growth is projected to rebound to 6 per cent in 2025, driven by agriculture recovery, manufacturing and investments in mining, among other sectors.
GDP Growth Rates by Industry(%)
| 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | |
|---|---|---|---|---|---|---|---|---|
| Actual | Actual | Estimate | Proj. | Proj. | Proj. | Proj. | Proj. | |
| Agriculture, Hunting & Fishing & forestry | 6.3 | (15.0) | 12.8 | 7.7 | 6.8 | 7.2 | 3.7 | 4.9 |
| Mining and quarrying | 5.3 | 2.3 | 5.6 | 5.5 | 5.0 | 5.0 | 5.9 | 5.2 |
| Manufacturing | 2.1 | 2.0 | 3.1 | 3.2 | 3.3 | 3.5 | 3.8 | 3.8 |
| Electricity, gas, steam & air conditioning supply | (3.7) | 3.1 | 10.6 | 4.2 | 5.0 | 5.0 | 5.0 | 5.0 |
| Water supply; sewage, waste management & remediation activities | (4.7) | 3.8 | 3.9 | 3.7 | 2.6 | 3.1 | 4.6 | 4.7 |
| Construction | 6.8 | 6.2 | 4.9 | 4.6 | 4.9 | 4.1 | 4.5 | 5.0 |
| Wholesale and retail trade; repair of motor vehicles & motorcycles | 6.6 | 5.1 | 5.4 | 4.6 | 5.0 | 5.4 | 6.2 | 6.2 |
| Transportation and storage | 10.0 | 5.6 | 5.2 | 6.0 | 6.5 | 5.2 | 6.1 | 4.7 |
| Accommodation and food service activities | 26.4 | 12.0 | 4.3 | 2.5 | 2.6 | 2.5 | 2.5 | 2.5 |
| Information and communication | 16.1 | 11.0 | 9.9 | 6.9 | 7.0 | 7.0 | 6.8 | 6.8 |
| Financial and insurance activities | 2.4 | 4.8 | 4.8 | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 |
| Real estate activities | 0.3 | 3.8 | 4.3 | 3.2 | 3.2 | 3.3 | 3.3 | 3.3 |
| Professional, scientific & technical activities | 0.9 | 0.4 | 0.7 | 0.5 | 0.6 | 0.5 | 0.6 | 0.6 |
| Administrative & support service activities | 1.6 | 2.0 | 2.6 | 1.7 | 2.2 | 2.0 | 1.8 | 2.0 |
| Public administration & defence; compulsory social security | 3.1 | 4.6 | 4.5 | 4.4 | 4.7 | 3.4 | 5.4 | 3.2 |
| Education | 6.8 | 3.4 | 0.0 | 5.3 | 4.9 | 3.8 | 3.0 | 2.4 |
| Human health & social work activities | 2.4 | 4.1 | 4.9 | 7.2 | 4.0 | 5.4 | 5.0 | 5.0 |
| Arts, entertainment and recreation | 1.2 | 1.7 | 2.1 | 2.0 | 2.0 | 1.9 | 1.9 | 1.9 |
| Other service activities | 2.2 | 2.8 | 3.0 | 2.9 | 2.8 | 2.7 | 2.7 | 2.6 |
| Domestic Services | 0.5 | 0.8 | 1.0 | 1.1 | 1.0 | 1.1 | 1.0 | 1.0 |
| GDP Growth Rate (%) | 5.3 | 2.0 | 6.0 | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 |
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
Monetary Developments
Zimbabwe allows the use of denominated foreign currencies as legal tender alongside with the local currency, the Zimbabwe Gold (ZiG). The use of the multicurrency system was legalized through the Exchange Control (Exclusive use of Zimbabwe Dollar for Domestic Transactions) (Amendment) Regulations, 2020 (no.2), published in Statutory Instrument 85 of 2020 dated 29th March 2020. The Statutory Instrument legalized the use of foreign currency for domestic transactions, that is, transactions carried out within Zimbabwe.
With respect to foreign currency accounts, individuals, local and foreign owned corporates, who are registered in Zimbabwe, are allowed to open up to nine (9) Foreign Currency Accounts denominated in United States Dollar (USD), South Arican Rand (ZAR), Botswana Pula (BWP), British Pound (GBP), Euro (Euro), Japanese Yen (JPY), Chinese Yuan (CNY), Indian Rupee (INP) and Australian Dollar (AUD) per Authorized Dealer.
For more information refer to the Guidelines to authorized dealers on foreign exchange transactions. (Guidelines to authorized dealers on foreign exchange transactions)
Balance of Payment
The current account surplus of US$500 million was recorded in 2024 representing 1.4 per cent of GDP. In 2025 a current account surplus of US$277.4 million is projected, supported by diaspora remittances and a narrowing trade deficit.
MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT