Economic and Political Overview

flag Zimbabwe Zimbabwe: Economic and Political Overview

In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

 

Economic Indicators

Zimbabwe is a lower-middle-income country with strong human and natural capital, offering significant growth potential. With a highly educated workforce, abundant resources, and recent economic and institutional reforms, Zimbabwe could achieve rapid growth and reach upper-middle-income status by 2030, as targeted by the Government of Zimbabwe (GoZ). However, macroeconomic instability and fiscal pressures have historically hindered progress. The country’s economy is recovering after the El Niño-induced drought, with growth slowing from 5.3% to an estimated 2% in 2024. The drought reduced agricultural output by 15%, while lower electricity production and falling prices for key minerals (platinum and lithium) further impacted growth. However, strong remittances helped support domestic trade, services, and construction, boosting the current account surplus to an estimated USD 500 million (1.4% of GDP) in 2024. Growth in 2025 is projected to rise to 6%, driven by a recovery in agricultural output due to improved climate conditions and a forecasted improvement in terms of trade (IMF).

Concerning public finances, fiscal pressures worsened, largely due to the transfer of the RBZ’s quasi-fiscal operations to the Treasury. Although strong revenue collection kept the 2024 budget deficit to an estimated 1% of GDP, these pressures led to a buildup of domestic expenditure arrears, prompting the government to introduce emergency spending cuts. The ZiG WBWS exchange rate remained stable from its launch in April 2024, with month-on-month inflation averaging 2.3%, until weakening in September. Monetary tightening since then helped restore stability, with both the WBWS and parallel market rates stabilising and the gap between them narrowing. According to the World Bank, public debt remains high, unsustainable, and in distress, restricting access to international financing. With growing external arrears and legacy debts, total public debt reached USD 21.2 billion in 2023 (96.6% of GDP). In April 2024, the RBZ launched the ZiG currency, initially stabilising the exchange rate and keeping inflation in single digits through August. Tight monetary policy from October helped improve inflation dynamics, with ZiG inflation projected to fall from 736% in 2024 to 84% in 2025, and 8% over the medium term. Despite progress, Zimbabwe remains heavily dollarised, with foreign currency accounts making up 83% of broad money in December 2024. USD inflation is expected to stay in single digits in 2025, further improving the weighted USD-ZiG inflation rate. The parallel market premium has also narrowed, easing currency pressures.

Unemployment rate estimates stood at 21.8% as of Q3/2023, according to ZimStat, the country's national statistics agency. Due to low GDP growth in 2024, the poverty rate at the USD 2.15/day (PPP) international line declined only slightly to 37.7% (World Bank). The agricultural downturn from drought likely hit rural and farming households the hardest. Poverty is expected to decline in 2025 with stronger growth, though global uncertainties pose risks. Weak 2024 growth and low poverty reduction elasticity slowed progress. Despite strong human capital, job creation remains limited and informality high. The El Niño drought exposed poor households' climate vulnerability, highlighting the need for broader, targeted social protection. Lastly, the country was estimated to have a GDP per capita (PPP) of USD 5,075 in 2024, among the lowest in the world (IMF).

 
Main Indicators 2023 (E)2024 (E)2025 (E)2026 (E)2027 (E)
GDP (billions USD) 35.2335.9236.9337.1938.06
GDP (Constant Prices, Annual % Change) 5.32.06.04.53.5
GDP per Capita (USD) 2,1192,1142,1272,0982,102
General Government Gross Debt (in % of GDP) 96.770.358.055.453.1
Inflation Rate (%) 667.4635.323.68.05.8
Current Account (billions USD) 0.14-0.110.140.270.29
Current Account (in % of GDP) 0.4-0.30.40.70.8

Source: IMF – World Economic Outlook Database , Latest available data

Note: (e) Estimated Data

Main Sectors of Industry

Zimbabwe has abundant natural resources, including diamonds, gold, coal, iron ore, nickel, copper, lithium, tin, and platinum. Diamond, gold, and platinum have been the most economically significant natural resources produced in Zimbabwe. Even though the country is rich in resources, only around 10.3% of the land is arable. Overall, agriculture represents 4.1% of GDP and employs 52.5% of the population (World Bank). The agricultural sector is dominated by tobacco production, which is the country’s second source of foreign currency. Other agricultural exports include maize, cotton, wheat, coffee, sugarcane, peanuts, sheep, goats, and pigs. Zimbabwe's economy depends heavily on its mining and agriculture sectors; however, agriculture remains vulnerable to climate shocks: according to FAO, a severe and prolonged drought in early 2024 slashed cereal production to about 1.3 million tonnes—nearly 40% below the five-year average. Maize was hardest hit, with output estimated at 635,000 tonnes, over 60% below average, as critical rainfall shortages during key growth stages led to low yields and the loss of about half the planted area.

Industry represents 26.3% of the GDP and employs 12.3% of the workforce. Despite its potential, growth in both mining and manufacturing has remained sluggish, hindered by a challenging business climate marked by high inflation, limited access to affordable financing, and ongoing foreign currency retention policies. These policies, which require exporters to convert a portion of their earnings into local currency, continue to increase operational costs and undermine the competitiveness of exporters, particularly in the mining sector, which has struggled to fully benefit from global mineral price trends. In response to these persistent challenges, the government launched the Zimbabwe Industrial Reconstruction and Growth Plan (2024–2025) in late 2023, replacing the Zimbabwe National Industrial Development Policy. The manufacturing sector contributes about 14% of GDP but is under increasing strain, with capacity utilisation dropping to 52.3% in 2024 from 53.2% in 2023, according to the Confederation of Zimbabwe Industries.

Services, which represent 62.4% of the GDP, employ 35.1% of the workforce and are highly reliant on tourism, given that the country enjoys a number of tourist sites of global significance: tourism receipts increased from USD 1.16 billion to USD 1.20 billion in 2024, while investment in the sector grew from USD 172 million in 2023 to USD 191 million in 2024 (data Tourism Authority). The construction and financial sectors also play a role in the Zimbabwe economy. The country has a banking sector fashioned after the British model, with the Reserve Bank of Zimbabwe (RBZ) acting as the central bank. The sector comprises commercial banks, the largest subset, along with merchant banks, which facilitate trade financings and corporate transactions like mergers and acquisitions. Additionally, there are building societies offering real estate mortgages, the government-owned People’s Own Savings Bank, development financial institutions, and micro-finance entities. The financial landscape also includes insurance firms, pension funds, provident funds, investment trusts, and offshore portfolio investors.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 52.5 12.3 35.1
Value Added (in % of GDP) 4.1 26.3 62.4
Value Added (Annual % Change) 6.3 3.2 6.7

Source: World Bank - Latest available data.

 

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Monetary Indicators 20192020
American Dollar - accepted in the context of the multi-currency framework (USD) - Average Annual Exchange Rate For 1 MUR 0.031.63

Source: World Bank - Latest available data.

 
 

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Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Score:
39,5/100
World Rank:
174
Regional Rank:
46

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 
 

Country Risk

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Foreign Trade in Figures

The Zimbabwean Government is generally open to foreign trade, which accounts for 51% of its GDP, according to the latest World Bank estimates. In the context of economic and regional integration, the country has strengthened its ties with the SADC (Southern African Development Community) member countries and levies lower duties on imports from such countries. However, the strict control of trade exercised by the government and the relatively high customs duties make the country difficult to access. There are other barriers that continue to impact trade such as the lack of long-term economic and political reforms, state control over companies, insecurity, and a lack of skilled labour forces. The country mainly exports gold (25%), unmanufactured tobacco (16.5%), nickel mattes (13.7%), vermiculite (12.2%), and nickel ores (9%);  whereas imports are led by petroleum oils (16.9%), motor vehicles for transport of goods (3.0%), nitrogenous fertilisers (2.6%), soya-bean oil (2.3%), and motor cars (2.2% - data Comtrade 2023).

In 2023, Zimbabwe's main export partners were South Africa (30.9% of total exports), the United Arab Emirates (26.4%), China (17.7%), Mozambique (5.5%), and Belgium (2.9%). South Africa was also the main import origin (38%), ahead of China (14.9%), Bahamas (5.1%), Singapore (5.0%), Bahrain (3.5%), and Mozambique (3.1% - data Comtrade). The country was once a major agricultural exporter, but today it imports foodstuffs and manufactured goods in large quantities. This is mainly due to land expropriation and state-owned enterprises distorting the economy, as well as government intervention, inadequate supervision, and political instability that undermine the financial system. This economic change has significantly damaged the country's trade balance, which is now in deficit.

According to data by WTO, in 2023, exports of goods amounted to USD 7.22 billion (+9.7% year-on-year), while imports reached USD 9.21 billion (+6.4%). Over that same period, services exports amounted to USD 507 million, while imports reached USD 1.41 billion. The country’s trade balance for goods and services was negative by 7.6% of GDP (from 9% one year earlier – data World Bank). The latest data from the Zimbabwe National Statistics Agency (ZimStat) shows that imports increased by 4% to USD 9.5 billion, while exports rose by 3% to USD 7.4 billion compared to 2023. The country’s trade deficit widened by 6% to USD 2.1 billion in 2024, driven largely by higher grain and fuel imports.

 
Foreign Trade Indicators 20192020202120222023
Imports of Goods (million USD) 4,8175,6437,5778,6539,214
Exports of Goods (million USD) 4,2694,3956,0366,5867,225
Imports of Services (million USD) 9097709451,3331,417
Exports of Services (million USD) 603331275464507
Imports of Goods and Services (Annual % Change) 8.3-44.161.554.0-11.0
Exports of Goods and Services (Annual % Change) 13.9-48.947.043.4-8.4
Imports of Goods and Services (in % of GDP) 28.225.028.136.929.2
Exports of Goods and Services (in % of GDP) 27.622.322.827.921.6
Trade Balance (million USD) 174212-779-1,132-1,453
Trade Balance (Including Service) (million USD) -131-226-1,529-2,115-2,690
Foreign Trade (in % of GDP) 55.847.350.864.850.8

Source: WTO – World Trade Organisation ; World Bank , Latest Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2023
South Africa 30.9%
United Arab Emirates 26.4%
China 17.7%
Mozambique 5.5%
Belgium 2.9%
See More Countries 16.5%
Main Suppliers
(% of Imports)
2023
South Africa 38.0%
China 14.9%
Bahamas 5.1%
Singapore 5.0%
Bahrain 3.5%
See More Countries 33.4%

Source: Comtrade, Latest Available Data

 
 

Main Products

7.2 bn USD of products exported in 2023
Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form 25.0%
Unmanufactured tobacco; tobacco refuseUnmanufactured tobacco; tobacco refuse 16.5%
Nickel mattes, nickel oxide sinters and other...Nickel mattes, nickel oxide sinters and other intermediate products of nickel metallurgy : 13.7%
Vermiculite, perlite and other mineral substances,...Vermiculite, perlite and other mineral substances, n.e.s. 12.2%
Nickel ores and concentratesNickel ores and concentrates 9.0%
See More Products 23.7%
9.2 bn USD of products imported in 2023
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 16.9%
Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab 3.0%
Mineral or chemical nitrogenous fertilisers (excl....Mineral or chemical nitrogenous fertilisers (excl. those in pellet or similar forms, or in packages with a gross weight of <= 10 kg) 2.6%
Soya-bean oil and its fractions, whether or not...Soya-bean oil and its fractions, whether or not refined (excl. chemically modified) 2.3%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 2.2%
See More Products 73.0%

Source: Comtrade, Latest Available Data

 
 

To go further, check out our service Import-Export Flows.

 
 

Main Services

Source: United Nations Statistics Division, Latest Available Data

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Sources of General Economic Information

Ministries
Official list of ministries
Ministry of Finance and Economic Development
Foreign Affairs and International Trade
Ministry of Industry and Commerce
Ministry of Agriculture
Statistical Office
Zimbabwe Statistics Bureau (Zimstat)
Central Bank
Reserve Bank of Zimbabwe
Stock Exchange
Zimbabwe Stock Exchange
Victoria Falls Stock Exchange
Search Engines
Google Zimbabwe
Economic Portals
Zimbabwe Portal

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Political Outline

Current Political Leaders
President: Emmerson Dambudzo MNANGAGWA (since 4 September 2023)
Vice President:
Constantino CHIWENGA (since 4 September 2023)
Second Vice-President: Kembo MOHADI (8 September 2023)
Next Election Dates
General elections: 2028
Main Political Parties

Zimbabwe has a multi-party system, though a handful of larger parties typically dominate politics. The main political parties in the country include:


The African National Union of Zimbabwe - Patriotic Front (ZANU-PF): left, ruling party, nationalist and populist, heir to the liberation movements that fought the apartheid regime of Ian Smith, led by Emmerson Dambudzo Mnangagwa.
Movement for Democratic Change – Tsvangirai (MDC–T): centre-left, social democracy, named after former opposition leader Morgan Tsvangirai; significantly weakened in recent years and eclipsed by the CCC.Citizens Coalition for Change (CCC): centre-left, social democracy, founded in 2022 by Nelson Chamisa after a split from the MDC Alliance; following Chamisa’s resignation in January 2024 amid claims of infiltration by the ruling party, the CCC has experienced internal leadership disputes, with figures such as Lynette Karenyi-Kore and Jameson Timba emerging.

Type of State
Zimbabwe is a presidential republic.
Executive Power
Executive power is held by the President, the head of state and the head of government, who is elected for a five-year term. The President appoints the members of his Cabinet. The President is elected by direct universal suffrage and is assisted by a Vice-President. Under the new constitution, adopted after the presidential elections of 2013, the post of Prime Minister has been abolished.
Legislative Power
The legislative power is vested in a bicameral parliament consisting of a Senate (80 seats - 60 members elected by popular vote for a five-year term, 18 traditional chiefs elected by the Council of Chiefs, and 2 seats for people with disabilities) and an Assembly (280 seats - 210 members elected by popular vote for a five-year term to represent single-member constituencies, 60 seats reserved for women, who are elected by proportional representation in 10 six-seat constituencies, and 10 additional seats reserved for candidates aged between 21 and 35 directly elected by proportional representation).
 

Indicator of Freedom of the Press

Definition:

The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

World Rank:
130/180
 

Indicator of Political Freedom

Definition:

The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Ranking:
Partly Free
Political Freedom:
6/7

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House

 

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Latest Update: May 2025