Zimbabwe Economic Update 2024
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Washington, DC: World Bank
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Zimbabwe’s impressive recovery since
the 2019-20 COVID-19 recession has been slowed by the 2024
El-Niño-related drought. The fiscal deficit is projected to
have fallen to below 3 percent in 2024. Challenges to
finance the deficit persist, which has also put pressure on
the newly introduced ZiG currency. In 2024, gross domestic
product (GDP) growth rate is projected to decline to 2.0
percent, driven by a sizeable agricultural contraction, as
El Niño brought about the worst drought in Zimbabwe in the
last 40 years. While agriculture grew by 6.3 percent in
2023, it is expected to result in a steep 15 percent decline
in 2024. The manufacturing sector has seen lackluster
growth, driven in part by power shortages that were caused
by the El Niño drought, as declining water levels in Lake
Kariba affect Zimbabwe’s hydroelectric power generation.
Yet, the mining sector continues to exhibit strong growth,
bolstered by rising gold prices. Similarly, the tourism
industry is growing rapidly, with increasing numbers of
international arrivals and hotels’ bed occupancy. Zimbabwe’s
public debt is in distress and unsustainable, constraining
access to international finance. To boost economic growth,
Zimbabwe will need to continue tackling its macroeconomic
challenges and press on with the structured dialogue
platform for arrears clearance and debt resolution.
Palabras clave
ECONOMIC GROWTH, INDUSTRY, FISCAL DEFICIT, GDP GROWTH RATE, WEATHER IMPACTS