The International Monetary Fund (IMF) has lowered its growth outlook for Zimbabwe in 2027.
The institution now expects growth of 3.5%, compared with 4.5% in its previous forecast, mainly due to the expected impact of lower rainfall and the risk of drought.
For 2026, however, the IMF maintains its growth estimate at 5%.
The institution is also more optimistic about 2025. It raised its growth forecast to 8.3%, from 7.5% previously.
According to the Fund, the revised outlook for 2027 already takes into account the drought response measures put in place by the Zimbabwean authorities. However, risks remain significant. A more severe drought than anticipated, delays in implementing mitigation measures or lower effectiveness of these measures could weigh further on economic activity.
On the fiscal front, the IMF notes that results recorded at the end of June were better than expected. However, the institution maintains its concerns regarding public spending choices.
In particular, it considers that insufficient protected social spending and spending deemed to be priorities remains a major issue for the Zimbabwean authorities.
