‘Economy stable despite external shocks’
Debra Matabvu
Senior Reporter
THE economy has remained resilient in the first quarter of 2026 despite growing geopolitical tensions in the Middle East that have triggered global uncertainty, higher energy prices and commodity market volatility, Information, Publicity and Broadcasting Services Minister Dr Zhemu Soda said yesterday. Addressing the post-Cabinet media briefing yesterday, Dr Soda said the domestic economy had withstood external shocks due to sustained macro-economic stability, improved agricultural activity and ongoing policy reforms aimed at improving the ease of doing business. “The first quarter of 2026 was characterised by elevated global uncertainty, primarily reflecting escalating geopolitical tensions in the Middle East, which have contributed to higher energy prices, increased commodity price volatility and unfavourable global financial conditions,” he said. “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. “To date, the domestic economy has remained broadly resilient, anchored by sustained macroeconomic stability and the successful rainfall season that has underpinned agricultural activity and continued policy reforms that are supporting and enhancing the ease of doing business.” The Government, Dr Soda said, projects economic growth of around 5 percent this year, driven mainly by recovery in agriculture and continued growth in the mining sector. ReadMore