Zimbabwe's Finance Minister, Mthuli Ncube, announced on Friday that the nation now expects its economy to grow by 6.6% this year, up from a previous forecast of 6%. The upward revision is a direct result of a bumper tobacco harvest and the sustained rally in global gold prices.
The minister, speaking at an economic conference in Bulawayo, highlighted that the agricultural and mining sectors have surpassed expectations, acting as key pillars of the country's economic resurgence.
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The new forecast represents a significant recovery for the commodity-dependent economy, which grew by just 2% last year. In 2024, the nation was severely impacted by an El Niño-induced drought, which devastated crop yields and crippled hydropower generation, forcing the government to import grain to meet domestic demand.
Since then, the agriculture sector has shown remarkable resilience. The country's maize and, most notably, tobacco output have improved dramatically. This impressive turnaround is credited to favorable climatic conditions and the hard work of farmers, who have set a new tobacco sales record this season.
The mining sector has also been a major contributor to the revised growth projection. The continuous rally in the global gold price has significantly bolstered mining revenues, injecting much-needed foreign currency into the economy. Zimbabwe's gold production has seen a remarkable increase, with the country's artisanal and small-scale miners contributing to record-high monthly output.
The soaring gold prices, driven by global geopolitical tensions and economic uncertainty, have made the metal a lucrative export for the southern African nation. This has not only boosted mining companies' profits but also incentivized increased exploration and production.
Ncube's announcement signals a positive shift in momentum for the Zimbabwean economy. The strong performance of its key export commodities, tobacco and gold, has provided a solid foundation for growth.
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