HARARE, Oct. 8 — The International Monetary Fund (IMF) management has approved the completion of the second review under Zimbabwe’s 10-month Staff Monitored Program (SMP), according to a statement issued by the international lender Wednesday night.
The completion reflects continued progress in consolidating macroeconomic stability and strengthening Zimbabwe’s track record of policy implementation in support of arrears clearance, debt resolution, and re-engagement with the international community, the IMF said.
According to the IMF, program implementation through the end of June 2026 was strong, with all quantitative targets and structural benchmarks met, except for the indicative target on protected social and priority spending.
Under the second review, the IMF noted that sustained fiscal and monetary discipline, stronger budget execution and fiscal governance, timely implementation of protected social spending, and continued monetary and foreign exchange market reforms will be essential to preserve stability.
It said that Zimbabwe’s economy has remained resilient, with economic activity expanding amid low inflation during the first half of 2026.
The economic outlook for 2026 remains favorable, with real GDP growth projected at 5 percent before slowing to 3.5 percent in 2027 due to the anticipated effects of an El Nino-related drought on agricultural production, the IMF said, adding that a recovery is expected in 2028.
Zimbabwe reached a staff-level agreement on the 10-month SMP with the IMF in February this year to help entrench macroeconomic stability and advance debt restructuring, though the informal program does not entail financial support.
“Continued implementation of the remaining program commitments, together with further progress in reconciling debt data and developing a credible and fully financed approach to arrears clearance and debt resolution, will help build further momentum in discussions with creditors and development partners,” the IMF said. (Namibia Daily News / Xinhua)
