Midweek Reporter
HARARE- The economy is expected to record a 5 % growth rate in 2026, primarily on account of anticipated strong agriculture and mining performance.
The expected normal to above normal rainfall during the 2025-2026 rainy season and continued firming of gold prices are expected to immensely contribute to the economic growth in 2026.
Presenting the 2026 national budget in parliament this Thursday, Finance and Economic Development minister, Mthuli Ncube said the economic growth is projected at 5 %.
“In 2026, economic growth rate is projected at 5 % underpinned by the following assumptions, the expected normal to above normal rainfall with irrigated cropping expected to boost the performance of the agricultural sector, currency in exchange rate and price stability, prudent fiscal policy and tight monetary policy will anchor the currency, exchange rate and inflation stability and focusing on steady international mineral commodity prices.
“Most commodities prices are expected to moderate, except for gold,” said Mthuli.
Ncube said low fuel prices will reduce the domestic cost of production while higher prices for gold will continue promoting the growth of the mining sector, increasing foreign currency inflows.
He also commented the ongoing ease of doing business reforms being implemented by the government such as lowering various fees and charges as a step in the right direction in improving the local products’ competitiveness.
“On the ease of doing business, the ongoing review and rationalization of the various licenses, fees and charges is expected to continue with overall impact of lowering domestic costs of production and doing business in improving national and global competitiveness for our local products, ” he said.
Ncube attributed low inflation in 2025 to prudent fiscal policy and tight monetary policy.
“Inflation developments in 2025 reflects the cumulative positive impact of the prudent fiscal policy, sustained tight monetary policy and proactive money supply growth management by the central bank (Reserve Bank of Zimbabwe).
“In terms of inflation, month on month ZIG inflation was minus 0.4% while annual inflation was at 32.7 % in the month of October 2025. The figure for November 2025 came out yesterday (Wednesday), month on month ZIG inflation is at about 0.2 % and then year on year ZIG inflation is at 19 %,” Ncube said.
He expressed confidence that by year end, the inflation level will further drop to near single digit and to single digit in the first quarter of 2026, the first single digit inflation since 1997.
“So I am confident that before year- end, we will see an inflation level of closer to 10 % and single digit inflation in the first quarter of next year. And if this happens, Mr Speaker Sir, that will be first time we would achieve that kind of single digit domestic inflation since 1997,” added Ncube.
President Mnangagwa, Vice President Chiwenga, cabinet ministers, and legislators graced the 2026 budget presentation at the New Parliament in Mount Hampden.
The 2026 budget presentation coincided with the launch of the economic blueprint, the National Development Strategy 2 (NDS 2) by President Mnangagwa at State House.
