Q1 economic growth jumps to 6.8 percent

Zimbabwe’s economy maintained its growth in the first quarter of 2026, registering a 6,8 percent expansion compared to 4,4 percent in the same period last year, figures from the Zimbabwe National Statistics Agency show. ZimStat said the latest figures suggest that the economy remains on a positive growth trajectory, supported by resilient performances in agriculture, manufacturing, finance and other productive sectors. Presenting the first quarter GDP results, ZimStat manager for national accounts Mr Grown Chirongwe, said the statistics provide an indication of changes in economic activity across the economy based on developments during the quarter. “The GDP at current prices for the first quarter of 2026 stood at ZiG394,5 billion, compared to ZWG427,2 billion recorded in the fourth quarter of 2025. “At constant 2025 prices, GDP for the first quarter was ZiG388,3 billion, down from ZiG401,6 billion in the preceding quarter,” he said. The 2026 Q1 annual GDP growth rate was, however, slower than 8,5 percent recorded in the fourth quarter of 2025. On a quarter-on-quarter basis, GDP contracted by 3,3 percent in Q1 2026 from a growth of 2,5 percent in the final quarter of last year, reflecting slower economic activity. Mr Chirongwe said the quarter-on-quarter growth rate decline highlighted the normal seasonal slowdown experienced during the opening months of the year. The statistics show that while several industries experienced slower activity, agriculture emerged as one of the strongest performing sectors during the quarter. Agriculture, forestry and fishing recorded a quarter-on-quarter growth of 6,4 percent, underlining the sector’s continued recovery and its growing importance to national output. Manufacturing also remained resilient, expanding 1,6 percent, while electricity generation posted growth of 0,6 percent. Financial and insurance activities likewise registered positive growth of 1,6 percent, reflecting continued stability within the financial services sector. However, these gains were partly offset by a sharp contraction in mining and quarrying, which declined 27 percent during the quarter. Water supply fell 8,2 percent, transportation and storage contracted 4,7 percent, while accommodation and food services dropped 5,8 percent. Construction also softened by 2,9 percent, illustrating the uneven nature of economic activity across sectors. Manufacturing remained Zimbabwe’s largest contributor to GDP, accounting for 17,1 percent of total value added during the quarter. Agriculture followed with a 13,9 percent contribution, while mining contributed 11,7 percent despite its quarterly decline. Wholesale and retail trade accounted for 10,9 percent, reinforcing the importance of domestic consumption and commercial activity to economic growth. Financial and insurance services contributed 6,7 percent, maintaining their position among the country’s major economic drivers.