HARARE — Zimbabwe’s Treasury built up nearly US $600 million in domestic expenditure arrears in 2024, the International Monetary Fund has disclosed, warning that new arrears are still accumulating even as the economy shows signs of recovery.
The IMF report said: “The fiscal deficit remained broadly stable between 2023 and 2024, but less financing led to the accumulation of nearly US$600 million of domestic expenditure arrears in 2024.”
It cautioned that “persistent fiscal financing gaps are inconsistent with achieving durable macroeconomic stability” and warned that the strain on public finances “risk fuelling expectations of a return to monetary financing.”
Despite the fiscal pressure, the IMF said the economy has been stabilising. In a statement released in Washington on Thursday, the IMF Executive Board noted the country “is experiencing a degree of macroeconomic stability due to monetary policy tightening,” adding that “economic activity recovered in the first half of 2025 and growth is expected to rebound this year, supported by better climate conditions and record-high gold prices.”
The assessment followed the Fund’s 2025 Article IV consultation with Zimbabwe, completed on Aug. 27. The IMF projected that gross domestic product growth will bounce back to 6 percent in 2025 after plunging to 1.7 percent in 2024 amid drought-driven power shortages and weak mineral prices.
