By ETimes
HARARE – ZIMBABWE’S economic rebound in 2025 is stronger than previously expected, the International Monetary Fund (IMF) said on Wednesday, while urging the government to reinforce fiscal discipline in its 2026 budget.
The statement followed a visit to Harare by an IMF staff team, led by Wojciech Maliszewski, as part of the Fund’s regular engagement with Zimbabwean authorities.
The visit took place from October 29 to November 5.
“Zimbabwe’s economic recovery in 2025 is stronger than previously anticipated, given the rebound in agriculture and solid performances in mining, while inflation has continued to significantly ease, supported by a stable foreign exchange rate.
“The economy is expected to maintain strong momentum in 2026,” Maliszewski said.
This comes as Zimbabwe’s economy is poised to be the fastest-growing in the region, with GDP growth forecast at 6.6% in 2025 and 5% in 2026.
The positive assessment offers a glimmer of hope for an economy that has struggled for years with high inflation and currency instability.
However, the IMF staff emphasised that sustaining this momentum requires prudent fiscal management.
“Discussions in Harare focused on enhancing fiscal discipline in the 2026 budget framework by aligning expenditures with revenues and available non-inflationary financing sources, while avoiding the accumulation of expenditure arrears,” he said.
“In this context, adopting credible revenue projections supported by concrete policy and administrative tax measures for 2026, and strengthening expenditure management, would help enhance fiscal resilience and the management of fiscal risks and pressures.”
The statement also referenced a potential Staff Monitored Program (SMP), an informal agreement between country authorities and IMF staff to monitor the implementation of economic policies.
Such a program does not involve financial assistance.
“In the context of the requested Staff Monitored Program, IMF staff stand ready to resume discussions upon progress towards addressing key policy issues highlighted in the Article IV consultations, including aligning the 2026 budget with the objective of sustaining macroeconomic stability,” Maliszewski added.
During the visit, the IMF team met with Finance Minister Mthuli Ncube, Reserve Bank Governor John Mushayavanhu, and other officials.
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