A new report by the World Bank Group, titled “The Zimbabwe Growth and Jobs Report,” highlights significant economic progress in Zimbabwe, with an average growth of nearly six percent between 2021 and 2025. This period also saw local-currency inflation drop to single digits in early 2026, a first since 1997. These developments provide a crucial foundation for stronger and more sustainable economic growth, according to the report.
However, the World Bank emphasizes the critical need for Zimbabwe to convert this newfound economic stability into increased investment, enhanced productivity, and the creation of more formal employment opportunities. The report points out that approximately 80 percent of Zimbabweans continue to be employed in the informal sector, where average monthly earnings hover around US$130. Furthermore, nearly half of the population lives below the international poverty line, indicating that economic growth has yet to translate into widespread improvements in household incomes and productive employment.
Key Players Involved
- World Bank Group: Authored “The Zimbabwe Growth and Jobs Report,” highlighting economic trends and recommendations.
- Victor Steenbergen (World Bank Senior Country Economist): Stated that while stabilization is essential, it is not sufficient for high and inclusive growth and jobs, but has opened a window of opportunity.
- Zimbabwean Government: Currently engaged in a 10-month staff-monitored program with the International Monetary Fund (IMF) to build policy credibility and facilitate international re-engagement.
Event Timeline
- Between 2021 and 2025: Zimbabwe experienced an average economic growth of almost six percent.
- Early 2026: Local-currency inflation in Zimbabwe fell to single digits, a milestone not seen since 1997.
- End of 2025: Zimbabwe’s external arrears to official creditors reached approximately US$7.7 billion, with additional arrears to external commercial creditors estimated at US$22.8 billion.
- September 7, 2026: The World Bank Group’s “The Zimbabwe Growth and Jobs Report” was released, outlining the country’s economic status and future recommendations.
