(TALKZIMBABWE, REUTERS) Zim economy set to grow by 2.8 pc

Zim economy set to grow by 2.8 pc
Floyd Nkomo/Reuters reporter
Sun, 07 Jun 2009 04:29:00 +0000

THE economy of Zimbabwe is forecast to grow by 2.8 percent in 2009 helped by the new inclusive Government's recovery programme, a Zimbabwean Economic Planning Ministry official said on Saturday.

"Our forecast this year is that the economy is going to grow by 2.8 percent," Samuel Undenge, deputy minister for economic planning, told reporters on the sidelines of a Cairo conference, adding this followed the new inclusive Government's move to set up a recovery programme, STERP, to stabilise the economy.

Zimbabwe planned to hold a conference for international investors around July 8 and 9, Undenge told reporters in the Egyptian capital.

Economic analysts say the economy is showing signs of stabilising after a decade of decline, but remains strained by foreign currency shortages.

A new inclusive Government, formed by President Robert Mugabe and Prime Minister Morgan Tsvangirai in February, says it needs $8.3 billion for the economy to fully recover, end high levels of unemployment and revive the industrial sector.

Major foreign donors, while acknowledging some progress by the new administration, remain unwilling to release any funding, insisting on political reforms, reversal of nationalisation laws and an end to farm invasions.

President Mugabe and his Zanu PF party have said the nationalisation laws are irreversible.

Zimbabwe recorded a monthly inflation rate of -1.1 percent in April as prices fell at a slower rate than in March, months after the country allowed use of multiple currencies.

Reuters/TZG