Zimbabwe Lowers 2027 Economic Growth Forecast to 3.5 Percent

Finance Minister Mthuli Ncube lowered Zimbabwe's economic growth forecast for 2027 to 3.5 percent, down from an initial projection of 5 percent. Speaking at a pre-budget seminar in Bulawayo, Ncube attributed the reduction to a challenging external environment and anticipated climatic risks, specifically an El Nino-induced drought during the 2026/2027 summer cropping season.

The 2027 National Budget will align with Vision 2030 and the second National Development Strategy, focusing on digital transformation, housing, infrastructure, and agricultural productivity. The government aims to maintain the budget deficit below 3 percent of GDP.

Despite the lowered future outlook, the government reported a strengthened fiscal position for 2026. Revenue collections exceeded expenditure during the first nine months of the year, a surplus driven by strong corporate and income tax receipts and improved tax administration by the Zimbabwe Revenue Authority. While the government expects continued macroeconomic stability and strong mineral exports, Ncube noted that the economy remains vulnerable to international price fluctuations.