FINANCE, Economic Development and Investment Promotion Minister has remained optimistic that economic growth projections will be around 5% by year end despite mounting global pressures driven by tensions in the Middle Eest.
Presenting the first quarter 2026 Economic Developments and Outlook Report to Cabinet Tuesday, Ncube said the period under review was characterized by elevated global uncertainty resulting in higher energy prices, increased commodity price volatility and unfavorable global financial conditions.
“Economic growth is still projected to moderate around 5% in 2026, reflecting anticipated strong agriculture sector recovery and mining sector growth underpinning overall growth of the economy.
“However, elevated fertilizer prices and higher shipping and insurance costs are increasing agricultural input costs, with potential adverse effects on crop yields, food security and overall economic activity” said Ncube.
He said to date, the domestic economy has remained broadly resilient, anchored by sustained macroeconomic stability and the successful rainfall season that has underpinned agricultural activity and continued policy reforms that are supporting and enhancing the ease of doing business.
Commodity markets in the First Quarter of 2026 were characterized by renewed upward pressures and heightened volatility, driven largely by escalating geo-political tensions affecting global energy supply chains.
Increasing production and transport costs which tend to contribute to rising inflationary pressures are being managed in order to protect jobs, sustain livelihoods and cushion the general citizenry.
“Fiscal developments in 2026 have so far been anchored on continued revenue recovery and expenditure containment, with total revenues projected to reach US$9.4 billion against a total expenditure of US$9.0 billion,” said Ncube.
In the outlook, export performance is expected to remain relatively strong, supported by gold, other minerals including Platinum Group of Minerals and Lithium, and Tobacco in the medium term.
