Zimbabwe's Economic Forecast: Challenges and Rebounds Amidst Severe Drought

Zimbabwe's economic growth is forecasted to slow to 2% in 2024 due to the worst drought in 40 years, affecting southern Africa. However, growth is expected to rebound to 6% in 2025, driven by recovery in agriculture and manufacturing projects. The IMF highlights resilience despite current challenges.

Zimbabwe's economic growth is projected to fall this year but could rebound in 2025, as southern Africa is hit by its worst drought in 40 years, the International Monetary Fund said.

Following a staff mission to the country, the IMF officials said late on Thursday that Zimbabwe's economy was on track to grow 2% in 2024, down from 5.3% last year. The government's forecast is higher, at 3.5% for 2024.

The economy remained resilient despite headwinds, but growth was expected to slow because of the drought, before recovering in 2025, the IMF staff team said in a statement. "Growth is expected to recover strongly in 2025 to about 6 percent, supported by a rebound in agriculture and ongoing capital projects in manufacturing," the statement said.

Some southern Africa countries are experiencing the worst drought in decades as a result of El Niño, impacting crop yields and causing damage to water and electricity supply. El Niño is a natural climate phenomenon in which surface waters of the central and eastern Pacific become unusually warm, causing changes in global weather patterns.

In May, the Zimbabwean government forecasted that staple maize production will drop 72% in the 2023/24 season.