HARARE, July 28 (Xinhua) -- The International Monetary Fund (IMF) has praised the resilience of Zimbabwe's economy despite a challenging external environment, following the completion of the first review under its 10-month Staff-Monitored Program (SMP).
In a statement issued Monday, the IMF said Zimbabwe's growth reached 8.3 percent in 2025 and remained strong into early 2026, driven by improved agricultural output, robust mining activity, and favorable gold prices. Inflation has remained low due to tight monetary policy and exchange rate stability.
According to the statement, the growth is projected at 5 percent in 2026 and 4.2 percent over the medium term, while the current account surplus is expected to narrow but remain robust. However, downside risks stem from a potential major El Nino event and geopolitical tensions in the Middle East.
The IMF noted that program implementation through March 2026 was strong, with all quantitative targets and structural benchmarks met, though the indicative target on protected social spending was missed.
Reached in February, the non-financing SMP aims to enhance macroeconomic stability, build policy credibility, and support Zimbabwe's broader efforts toward arrears clearance, debt restructuring and re-engagement with the international community.
Completion of the review marks an important step in consolidating stabilization gains, the IMF said, emphasizing that sustained policy discipline, stronger fiscal risk management, social spending protection, continued monetary and exchange rate reforms, and governance improvements remain vital to entrenching these gains.
Continued progress under the SMP, alongside efforts to reconcile debt data and establish a credible debt-resolution strategy, will help advance discussions with external partners and support Zimbabwe's international re-engagement, the IMF added. ■
