Published: 10 hours ago

Zimbabwe's Gross Domestic Product (GDP) contracted by 1.73% to ZWG17.6 billion in the first quarter of 2025, down from ZWG17.9 billion recorded in the fourth quarter of 2024, the Zimbabwe National Statistics Agency (ZimStat) announced yesterday.

The decline was largely driven by contractions in key sectors including mining and quarrying, accommodation and food services, as well as water supply.

ZimStat noted that these figures reflect underlying shifts in economic activity during the period.

Following a recent economic census, Zimbabwe revised its GDP upward to US$44.4 billion from a previous estimate of US$35.2 billion, reflecting stronger economic fundamentals.

However, at constant prices, the economy showed a marginal downturn in early 2025.

"The GDP figure at constant prices for the first quarter of 2025 was ZWG17.6 billion, down from ZWG17.9 billion in the fourth quarter of 2024. This represents a 1.73% decrease," the agency reported.

The most affected industries included mining and quarrying, which shrank by 21.6%, accommodation and food services, down 24.1%, and water supply, which contracted by 12.3%.

Despite the dip at constant prices, GDP measured at current prices rose to ZWG335 billion in the first quarter of 2025 from ZWG299 billion in the preceding quarter, buoyed by growth in agriculture, electricity supply, information and communication, and finance and insurance sectors.

Selected industries that recorded quarter-on-quarter growth included agriculture (18.8%), electricity supply (6.1%), information and communication (4.3%), and finance and insurance activities (4.3%).

The top five contributors to GDP in Q1 2025 were manufacturing (15%), mining and quarrying (12.4%), agriculture (11.7%), wholesale and retail trade (11.6%), and finance and insurance (11.2%).

Economists warn that the sectoral declines, particularly in mining and hospitality, underscore ongoing challenges the economy faces, including global commodity price fluctuations and domestic service sector constraints.

ZimStat's report highlights the need for targeted interventions to stimulate lagging sectors and sustain overall economic growth as Zimbabwe moves forward in 2025.
- Newsday

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