The International Monetary Fund (IMF) has commended Zimbabwe’s economic resilience despite a challenging external environment, following the successful completion of the first review under its 10-month Staff-Monitored Programme (SMP).

The IMF, in a statement, said Zimbabwe’s economy grew by 8.3 per cent in 2025 and remained strong in early 2026, driven by improved agricultural production, robust mining activity and favourable gold prices.

It said inflation remained low, supported by tight monetary policy and exchange rate stability, adding that the country’s macroeconomic performance had continued to improve.

According to the IMF, Zimbabwe’s economy is projected to grow by five per cent in 2026 and 4.2 per cent over the medium term, while the current account surplus is expected to narrow but remain strong.

The Fund, however, warned that downside risks include a potential major El Niño event and persistent geopolitical tensions in the Middle East, which could affect economic performance.

The IMF noted that implementation of the programme through March 2026 remained strong, with quantitative targets and structural benchmarks achieved, though the indicative target on protected social spending was missed.

It recalled that the non-financing staff-monitored programme, agreed in February, was designed to strengthen macroeconomic stability, build policy credibility and support Zimbabwe’s efforts towards arrears clearance, debt restructuring and re-engagement with the international community.

The IMF said completion of the first review marked an important milestone in consolidating Zimbabwe’s macroeconomic stabilisation gains and advancing reforms aimed at supporting sustainable economic growth and financial stability.

(Xinhua/NAN)