HARARE, Zimbabwe — Zimbabwe economic growth has demonstrated significant resilience, averaging almost 6 percent between 2021 and 2025, according to the newly released Zimbabwe Growth and Jobs Report by the World Bank Group. This sustained momentum, coupled with local-currency inflation falling to single digits in early 2026 for the first time since 1997, presents a timely opportunity for the nation to build long-term economic stability and expand formal employment opportunities.
The report details that the economy expanded by over 8 percent in 2025, supported by a robust agricultural season and a favorable external environment. A World Bank Group spokesperson noted that the government’s current engagement in a 10-month staff-monitored program with the International Monetary Fund (IMF) is helping to build policy credibility, laying the necessary groundwork for renewed international financial re-engagement.
Despite these macroeconomic improvements, the report cautions that this growth has not yet translated into widespread improvements in household incomes or productive employment. Approximately 80 percent of Zimbabweans remain employed in the informal sector, where average monthly earnings hover around $130 USD, and nearly half the population lives below the international poverty line. Labor has largely shifted from agriculture into low-productivity retail and informal services.
Addressing this demographic reality, a World Bank Group spokesperson emphasized a necessary shift in perspective regarding the workforce: “We have stopped calling it informal… we are calling it an emerging sector, because not contributing to taxes does not make it informal. They are creating jobs; they are producing. Going forward, we should focus on how to assist them to grow, link up with big corporates, and create more jobs.”
The report also issues a stark warning against rushing to end the use of foreign currency in the economy, cautioning that a forced transition could trigger capital flight. Zimbabwe previously set 2030 as the deadline to phase out the domestic use of dollars and establish its bullion-backed ZiG as the sole currency. However, a spokesperson highlighted that the current de-dollarization agenda has created market uncertainty and continues to block the government’s access to concessional finance. Recommendations stress the need to sequence the currency transition in a transparent, market-driven manner, noting that since dollarization originally started organically “in the streets,” the public must also play a role in this process.
In a positive institutional development, the World Bank removed Zimbabwe from its list of fragile and conflict-affected situations in July 2026, signaling improved economic and institutional conditions. Nevertheless, longstanding debt arrears remain a critical hurdle. An International Monetary Fund (IMF) representative estimates that Zimbabwe’s external arrears to official creditors rose to approximately $7.7 billion by the end of 2025, with the country also accumulating additional arrears to external commercial creditors totaling roughly $22.8 billion USD.
Translating this newfound macroeconomic stability into increased investment, productivity, and formal job creation remains the definitive test for Zimbabwe’s economic future.
