The Sunday Mail
Online Reporter
The International Monetary Fund (IMF) expects the country’s economy to grow 6 percent this year driven by “a bumper agricultural output, increased energy production and the resumption of greater manufacturing and construction activities”.
In a statement on Wednesday after the conclusion of a virtual staff visit that took place from June 1 to June 15, the Washington-based international financier said the outlook will, however, depend on the coronavirus evolution, the pace of vaccination and implementation of sustainable policies.
“The IMF mission notes the authorities’ efforts to stabilise the local currency and lower inflation. In this regard, contained budget deficits and reserve money growth, as well as the introduction of a foreign exchange auction system, are policy measures in the right direction,” read the statement.
“Further efforts are needed to solidify the stabilisation trends and accelerate reforms. The near-term macroeconomic imperative is to improve the coordination among fiscal, foreign exchange and monetary policies, while addressing Covid-19 related economic and humanitarian challenges. In line with the last Article IV consultation, the mission highlighted that structural reforms aimed at improving the business climate and reducing governance vulnerabilities are essential for ensuring sustained and inclusive growth.”
The strategy and policies encapsulated in the National Development Strategy (NDS)1, IMF added, “need to be fully operationalised and implemented”.
The staff visit precedes the 2021 Article IV consultation mission expected to take place later this year.
In a State of the National Address (SONA) address at State House on Saturday, President Mnangagwa said Government will double down on economic reforms, which are now bearing fruit.
NDS1 is expected to guide the country’s economic development in the five years through 2025.
