IMF approves Zimbabwe’s second review, projects 5% economic growth in 2026

THE International Monetary Fund (IMF) has noted progress in Zimbabwe’s economic stabilisation efforts following the approval of the second review under its 10-month Staff-Monitored Programme (SMP), in a development that could strengthen international confidence in the country’s reform agenda.

The Bretton Woods institution said 2026 marked a turning point for the economy, citing expanding economic activity, annual ZiG inflation of 3.7% and improved fiscal and monetary management.

Zimbabwe’s exchange rate has remained stable, while mineral exports, favourable commodity prices and resilient remittance inflows have supported the country’s external position.

Fiscal revenue has also exceeded expectations, providing the government with greater flexibility in allocating resources, according to the assessment.

“Real GDP growth is projected at 5 percent for 2026, with inflation forecast to stay in the single digits and the current account set to remain in surplus. Even as growth is expected to moderate to 3.5 percent in 2027 amid climatic headwinds, Zimbabwe’s strategy is long-term and resilient, positioning itself for a swift recovery amid global uncertainty.

“The government’s commitment is evident—every quantitative and structural benchmark under the program has been met. Exceptionally strong fiscal performance is matched by a clear focus on protecting vital social and priority spending, despite persistent implementation challenges,” said the IMF in a statement.

The review also highlights efforts to improve programme implementation, address longstanding bottlenecks and ensure that economic reforms translate into tangible benefits for vulnerable communities.

Fiscal policy remains focused on stability and resilience, with stronger-than-expected revenue collections providing room to build strategic buffers against potential food security and energy challenges.

The government is expected to present its 2027 budget based on prudent revenue and financing assumptions, while prioritising social services and high-impact development spending.

Improved cash planning, tighter expenditure controls and transparent, data-driven liability management are also expected to help ensure public resources support sustainable growth and prevent the accumulation of new arrears.

Zimbabwe’s performance under the Staff-Monitored Programme comes as the government pursues economic reforms, debt reconciliation and progress towards clearing its arrears.

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