Zimbabwe and IMF reach agreement on second program review

The International Monetary Fund (IMF) and Zimbabwean authorities have reached a staff-level agreement to complete the second review of Zimbabwe’s 10-month Staff-Monitored Program. The agreement, which awaits approval by IMF Management, is intended to help consolidate macroeconomic stability and establish a track record for debt restructuring, arrears clearance, and international re-engagement.

IMF reports indicate that program implementation through June 2026 was strong. Most quantitative and indicative targets were met, including structural benchmarks for the Zimbabwe Social Registry (ZISO) and a Treasury Single Account reform strategy. While most targets were achieved, the indicative target for protected social and priority spending was not met.

Zimbabwe’s economy is projected to grow by 5 percent in 2026, following an 8.3 percent expansion in 2025. Annual inflation fell to 2.9 percent in August, supported by exchange rate stability and tight monetary conditions. While growth is expected to moderate to 3.5 percent in 2027 due to a potential El Niño event, the current account is projected to remain in surplus due to remittance inflows and export receipts.