HARARE, May 19 (Xinhua) -- Ongoing global uncertainty resulting from geopolitical tensions in the Middle East poses downside risks to Zimbabwe's economic outlook, a cabinet minister said on Tuesday.
Addressing a post-cabinet media briefing, Minister of Information, Publicity and Broadcasting Services Zhemu Soda said the cabinet had reviewed the 2026 first-quarter economic outlook report, noting that escalating Middle East conflicts have contributed to higher energy prices, commodity price volatility, and unfavorable global financial conditions.
"The developments pose downside risks to the outlook of the domestic economy through their impact on the balance of payments, agriculture output (fertiliser shortages), inflation, exchange rate and foreign reserves build-up," Soda said.
He added that the government is striving to contain rising production and transport costs to minimize their impact on businesses and the general population.
Despite these global supply chain disruptions, Soda said Zimbabwe's economy has remained resilient, anchored by sustained macroeconomic stability, strong agricultural performance, and continued policy reforms supporting the ease of doing business.
Zimbabwe's economic growth is still projected to moderate around 5 percent in 2026, driven by an anticipated recovery in agriculture and growth in the mining sector, according to Soda.
