The International Monetary Fund (IMF) has projected a seven per cent inflation target for Zimbabwe for the remainder of the year, assuming that macro stabilisation is sustained.
The Bretton Woods institution said growth is expected to decelerate to about two per cent this year from 5,3 per cent in 2023, as the country faces a devastating El Niño-induced drought.
The lender said growth is expected to recover strongly in 2025 to about six per cent, supported by a rebound in agriculture and ongoing capital projects in manufacturing.
While acknowledging headwinds like drought and a worsening balance of payments, the IMF highlighted the recent introduction of the Zimbabwe Gold (ZWG) currency by the Reserve Bank of Zimbabwe (RBZ) in April 2024 as a positive development.