Staff Writer 
ZIMBABWE’s economy is projected to grow to 2,3 percent this year, slightly lower than the 2,4 percent estimated in 2024, according to the World Economic Situation and Prospects report by the United Nations.
The projections come as the government expects a six percent growth this year buoyed by the projected favourable 2024/25 agricultural season, increased investments in critical sectors and favourable international commodity prices.
Last year, the country was impacted by an unprecedented drought, which created food insecurity for most households, heightened recessionary and inflationary pressures on the economy, as well as curtailed domestic electricity production, which resulted in increased load shedding.
The economy was also confronted by several headwinds, notably, an unfavourable and uncertain global environment, which continues to narrow policy options and presents challenging policy trade-offs.
The UN report highlighted that uncertainty still looms large, with risks stemming from geopolitical conflicts, rising trade tensions and elevated borrowing costs in many parts of the world.
The challenges, according to the UN, are particularly acute for low-income and vulnerable countries, where sub-par and fragile growth threatens to further undermine progress towards the Sustainable Development Goals (SDGs).
Global economic growth is projected to remain at 2,8 percent in 2025, unchanged from 2024, held back by the top two economies, the United States and China.
Growth in Africa is forecast to rise modestly from 3,4 percent in 2024 to 3,7 percent in 2025, attributed to recoveries in major economies including Egypt, Nigeria, and South Africa.
However, conflicts, rising debt-servicing costs, lack of employment opportunities and increasing severity of climate-change impacts weigh on Africa’s outlook, according to the UN.
The report stated that inflation has fallen considerably from the high rates registered in 2022 and 2023 across many African economies as international commodity prices, particularly fuel products and grains, have stabilised below recent peaks.
However, annual inflation remained above 10 percent in 2024 in Angola, Burundi, Egypt, Ethiopia, Malawi, Nigeria, Sierra Leone, South Sudan, Sudan, and Zimbabwe, primarily due to currency depreciation pass-through effects.
