ZiG Stability Drives Inflation Down in 2025

Zimbabwe’s economy showed notable stability throughout 2025, with reduced price fluctuations following the consolidation of the ZiG currency.

The calmer macro-economic environment is expected to carry into 2026, driven by the rollout of the National Development Strategy Two (NDS2), which officially took effect during the year.

At the beginning of 2025, annual inflation surged to 186 percent in January, a consequence of the sharp depreciation of the ZiG in September 2024 that triggered widespread price increases. However, inflation gradually eased as the year progressed, dropping to about 15 percent by November. This decline coincided with the longest stretch of relative stability for the local currency under a steady macro-economic framework.

Both businesses and consumers reported improvements in the economic climate, with many expressing confidence that the positive momentum will be sustained in 2026.

Several traders welcomed the stable exchange rates and predictable pricing environment, saying this allowed businesses to operate more effectively and post reasonable returns. Consumers also noted a rise in the acceptance of the ZiG, attributing it to improved availability and confidence in the currency.

Economic experts have described 2025 as a turning point in the effort to restore macro-economic balance. Economist Persistence Gwanyanya said the sharp drop in inflation was among the most significant achievements of the year.

He attributed the slowdown in price growth to a tight monetary policy stance by the Reserve Bank of Zimbabwe, adding that currency stability brought much-needed relief to households and enterprises.

Marondera East legislator Dr Vimbayi Mutokonyi echoed similar sentiments, saying the economy experienced one of its most improved periods in recent years, particularly given the past volatility associated with the local currency.

As the country looks ahead, optimism remains high that economic growth will be reinforced under NDS2. Nonetheless, stakeholders have urged authorities to improve the circulation of ZiG notes nationwide to ease day-to-day transactions.

Some citizens raised concerns about the limited availability of physical cash, particularly in outlying areas such as Murehwa, while others pointed to persistent shortages of small denominations as a challenge for everyday commerce.

In response, the Reserve Bank of Zimbabwe has announced plans to roll out a new series of ZiG notes to replace the current ones, a move intended to improve currency circulation and bolster public confidence in the local unit.