Zimbabwe’s economy is set to grow by 6% this year, nearly double its previous estimate, the International Monetary Fund has said, citing a bumper harvest, improved power supply and an increase in manufacturing and construction.
According to AFP, Zimbabwe’s Finance Minister Mthuli Ncube had predicted a 7.8 % growth following years of contraction.
“Zimbabwe has shown resilience in the face of the Covid-19 pandemic and other exogenous shocks,” IMF said in a statement, adding that the southern African country had cleared outstanding arrears to the fund in late 2016.
In rare praise of the authorities’ policy reforms, the IMF said attempts to contain the nation’s budget deficit, reserve money growth and the introduction of a foreign-exchange auction system signaled Zimbabwe was moving in the right direction, a Bloomberg report said.
“Further efforts are needed to solidify the stabilization trends and accelerate reforms,” the report quoted IMF as saying.
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