Story by Online Reporter
ZIMBABWE’s economic performance under the National Development Strategy 1 (NDS1) has sas surpassed initial projections, with the country achieving a notable average GDP growth rate of 5.6%, higher than the 5% annual target set for the 2021-2025 period.
Official data released ahead of the transition to NDS2 shows that Zimbabwe recorded substantial progress across all 14 thematic areas, demonstrating resilience, improved governance and sustained economic recovery despite global economic disruptions.
“During NDS 1, Zimbabwe achieved substantial progress across the 14 thematic areas, reflecting resilience, economic recovery and improved governance Towards a Prosperous and Empowered Upper Middle-Income Society by 2030,” the official review shows.
According to the latest review, the economy rebounded strongly during the NDS1 cycle, reversing a negative growth trend that averaged -0.7% in the five years preceding the strategy.
“The economy recorded a strong recovery during the NDS 1 five-year period, with average real GDP growth of 5.6%, up from an average of -0.7% recorded over the five-year period prior to NDS 1. Notably, this performance exceeded the annual NDS 1 growth target of 5%, underscoring the effectiveness of ongoing economic reforms and policy consistency,” read the review.
“In 2025, the economy is expected to have expanded by 6.6%, up from 1.7% recorded in 2024. This robust growth performance is underpinned by the recovery in agriculture, strong mining output and renewed investment in the manufacturing sector. The continued rebound in these sectors reflects Government’s commitment to fostering inclusive and sustainable development, providing a solid foundation for achieving Vision 2030.”
A key milestone under NDS1 was the introduction of the ZiG currency on 5 April 2024, which circulated alongside foreign currencies and contributed to stabilising the exchange rate. The improved stability helped boost confidence in the local currency and strengthened foreign reserves. Foreign currency reserves rose sharply from US$276 million in April 2024 to over US$900 million by October 2025, positioning Zimbabwe as the world leader in reserve accumulation, according to rankings by the World Bank.
“The introduction on 5 April 2024 of the domestic ZiG currency to circulate alongside other multi-currencies stabilised the exchange rate and restored confidence in the local currency. Foreign reserves rose from about $276 million in April 2024 to over US$900 million by October 2025, prompting the World Bank to rank Zimbabwe first among the top 10 countries in the world that had made significant progress in foreign currency reserves accumulation,” the review reveals.
The reserve build-up and greater exchange rate stability supported a marked slowdown in annual ZiG inflation, which declined from 85% in April 2025 to 32.7% in October, and is projected to fall to around 20% by the end of 2025.
“The consistent and sustained build-up of foreign currency reserves amidst increased exchange rate stability resulted in annual ZiG inflation declining from 85% in April 2025, to 32.7% by October 2025 and is projected to be around 20% by end December 2025, confirming entrenchment of macro-economic stability.”
