(ZIMPAPERS) IMF hails Zim efforts IMF hails Zim efforts

IMF hails Zim efforts
Friday, 28 January 2011 01:43 Business
Business Reporter

The International Monetary Fund this week praised efforts by the Government to boost economic growth after years of stagnation but warned that price increases and high wage demands could put pressure on inflation.

The fund also pledged to work with other international donors to bring back the country into the global economy, a development analysts say could unlock billions of dollars needed to support economic growth. The fund’s deputy director in the Africa department, Ms Sharmini Coorey, speaking in Johannesburg, said the IMF will continue to work with other multilateral funding organisations to bring Zimbabwe back into the international donor community so that the country can tap into much-needed resources to support economic growth.

Addressing the media at the launch of the IMF’s Global Economic Outlook report, Ms Coorey singled out the progress that Zimbabwe has made to reduce inflation, which she said was a direct result of the introduction of the multi-currency system which had helped stabilise prices.

“The (US) dollar has helped to bring inflation down and this is a positive development and fiscal discipline has also impacted on the economy. There are still a lot of challenges but revenue collection has been very good,” she said.

The Government is implementing a raft of monetary and fiscal measures to promote growth and attract job-creating investment from local and foreign investors.

[Typical neoliberal garbage. Tried before, failed before. - MrK]

Analysts, however, say the economy still has several structural weaknesses, among them price distortions, lack of liquidity and foreign currency for companies to import raw materials as well as equipment to rehabilitate ageing and obsolete equipment.