Zimbabwe: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Zimbabwe

After facing significant macroeconomic volatility in recent decades, Zimbabwe has recently experienced a degree of stability thanks to tighter policies. The halting of quasi-fiscal operations and monetary financing by central bank have helped significantly reduce inflation and exchange rate pressures. Growth has recovered as extreme weather shocks subsided, and terms-of-trade significantly improved. But challenges remain from fiscal financing pressures with very limited access to official external financing and the accumulation of domestic arrears, low monetary policy credibility, a highly dollarized monetary system, low reserve buffers, a persistent gap between the official and parallel exchange rates, and economic governance vulnerabilities.

Subject: Arrears, Debt sustainability, Debt sustainability analysis, Exchange rates, External debt, Fiscal policy, Fiscal stance, Foreign exchange, Government debt management, Public and publicly-guaranteed external debt, Public debt, Public financial management (PFM)

Keywords: Arrears, Debt service, Debt sustainability, Debt sustainability analysis, Exchange rates, Fiscal stance, Government debt management, Public and publicly-guaranteed external debt, Sectoral analysis