Story by Stanley James, Business Editor
Zimbabwe’s 2025 economic outlook is underpinned by agriculture, exchange rate stability and favourable global commodity prices.
Information contained in the 2025 Budget Strategy Paper shows proposed interventions by Treasury to support the economy after enduring challenges due to the effects of the El Nino-induced drought.
With the economy now expected to record a two percent growth from the initial forecast of three comma five percent, Treasury is expecting a rebound next year at six comma five percent.
Recovery in agriculture, price and exchange rate stability, favourable global commodity prices and stable power supplies on account of stable electricity generation are factors Treasury hopes will spur the anticipated economic growth.
Government is expecting to collect revenues estimated at over 103 billion Zimbabwe Gold, while spending is projected at more than 101 billion Zimbabwe Gold.
Revenue mobilisation strategies for next year include tapping domestic resources and promoting the use of the Zimbabwe Gold on tax payments.
Government intends to use most of the incomes towards capital projects, development of social facilities and investments in drought-proofing agriculture, among others.
According to the strategy paper, Zimbabwe’s key focus for 2025 also includes fiscal consolidation, currency and exchange rate reforms, structural reforms, engagement and re-engagement, infrastructural development, investment promotion and support for productive sectors.
According to the African Development Bank’s 2024 African Economic Outlook, growth in Southern African is projected to pick up from an estimated 1,6 percent in 2023 to 2,2 percent in 2024 and firming up to 2,7 percent next year.
