Zimbabwe’s Q1 GDP Surges 11.2 Percent

Sunday News  

August 3, 2025

Nelson Gahadza, 

Zimpapers Business Hub

ZIMBABWE’S gross domestic product (GDP), at current prices, rose by 11,2 percent in the first quarter of 2025, to ZiG335 billion (US$12,5 billion), from ZiG299 billion (US$11,2 billion) in the last quarter of 2024, driven by agriculture, electricity supply, information and communication and finance and insurance activities.

Quarterly GDP refers to the measurement of a country’s economic output, specifically the total value of goods and services produced, over three months.

It provides a more frequent snapshot of economic activity compared to annual GDP, allowing for a better understanding of short-term trends and fluctuations.

GDP at current prices, also known as nominal GDP, is the total value of goods and services produced within a country’s borders, measured at the prevailing market prices of that period.

According to the Zimbabwe National Statistics Agency (ZimStat), the quarterly GDP figures provide an indication of changes in economic activities based on developments during the period under review.

The statistics tally with Finance, Economic Development and Investment Minister Professor Mthuli Ncube’s projections after he told legislators, while presenting the 2025 mid-term policy review on Thursday, that Zimbabwe’s economy is expected to achieve the targeted growth of 6 percent.

“This follows the post-drought recovery in agriculture, particularly in maize and tobacco production, increased investment in the mining sector targeting minerals such as gold, lithium and iron mining, as well as improved economic stability,” he said.

Despite global economic uncertainties that could negatively impact the country’s export receipts, the economy is expected to achieve the growth target for the year.

Presenting the GDP figures earlier this week, ZimStat manager national accounts Mr Grown Chirongwe said during the quarter under review, industries that registered growth included agriculture 18,8 percent, electricity supply 6,1 percent, information and communication 4,3 percent and finance and insurance activities 4,3 percent.

During the same quarter, mining and quarry declined by 21,6 percent, accommodation and food services fell by 24,1 percent, while water supply retreated by 12,3 percent.

Mr Chirongwe said the top five contributing industries to GDP in the first quarter of 2025 were manufacturing at 15 percent, followed by mining and quarrying at 12,4 percent, while agriculture recorded 11,7 percent.

“Wholesale and retail trade stood at 11,6 percent, while finance and insurance accounted for 11,2 percent,” he said.

According to the 2023 Economic Census conducted by ZimStat, the country’s GDP was rebased to ZiG168,5 trillion, equivalent to US$44,4 billion, up from the initial estimate of ZiG133,7 trillion (US$35,2 billion).

The adjustment reflects expanded coverage of economic activity, particularly in the informal sector and the inclusion of new business entities that have emerged since the last base year in 2019.

The Zimbabwe National Chamber of Commerce, one of Zimbabwe’s biggest and most influential business lobby groups, estimates the sector to constitute about 64,1 percent of the domestic economy.

The Government is actively encouraging the formalisation of its informal sector through various initiatives aimed at increasing tax compliance, providing access to formal financial services and offering legal protection.

These efforts include promoting electronic transactions, developing a Small to Medium Enterprises (SMEs) Formalisation Strategy and streamlining the formalisation process.