THE Zimbabwean economy got off to a strong start in 2025, with a significant boost from its agriculture and mining sectors.
This robust performance helped the Government to collect an impressive US$1,74 billion in revenue during the first quarter, comfortably exceeding its target of US$1,54 billion by over US$207,3 million.
This positive outcome was largely due to abundant rainfall, which invigorated agriculture and exceptionally high international prices of gold that bolstered the mining industry.
These favourable conditions were further supported by a stable macroeconomic environment, a direct result of the nation’s strict fiscal and monetary policies.
Despite the positive domestic outlook, the 2025 first quarter bulletin from the Ministry of Finance, Economic Development and Investment Promotion highlighted ongoing global economic uncertainties.
Geopolitical tensions, the imposition of tariffs and the withdrawal of development assistance were cited as external challenges that could potentially impede Zimbabwe’s desired economic growth and fiscal sustainability.
In local currency terms, cumulative revenue collections for the first three months of 2025 reached ZiG46,7 billion, with expenditures standing at ZiG45,2 billion, leading to a budget surplus of ZiG1,6 billion.
Tax revenue constituted a lion’s share of total collections, amounting to ZiG44,8 billion, or 95,9 percent.
Value-added tax (VAT) was the leading contributor, at 27,1 percent, followed by personal income tax, at 21,4 percent, excise duty, at 10,7 percent and corporate tax, at 8,5 percent.
On the expenditure front, total outlays during the quarter under review amounted to ZiG45,2 billion.
Recurrent expenditures, primarily employment costs and Government operations accounted for ZiG34 billion, while capital expenditures reached ZiG11,2 billion.
Of the capital expenditure, infrastructure development projects absorbed ZiG5,4 billion, approximately 48,7 percent of the total.
Source: The Herald
Source: The Herald
