Zimbabwe forecasts 5 percent economic growth in 2013
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E-mail Xinhua, November 16, 2012
Zimbabwe's economy is forecast to grow by 5 percent in 2013, Finance Minister Tendai Biti said on Thursday.
Presenting next year's national budget in Parliament, Biti said next year's economic growth forecast is conditional on a number of factors, including a good agricultural season and political stability.
He also revised this year's economic growth to 4.4 percent from an earlier revised projection of 5.6 percent.
At the beginning of the year, the economy was estimated to grow by 9.4 percent, which was later downgraded owing to poor performance by critical sectors of the economy, especially agriculture.
The minister proposed the national budget for next year at 3.8 billion U.S. dollars, up slightly from this year's projected 3.5 billion dollars.
He said the growth was predicated on the country receiving normal rainfall during agriculture season, firm international commodity prices and a violence-free election.
The biggest threat is a violent election, he said, adding it will be a case of two steps forward and 20 steps back.
The economy, Biti said, has registered positive growth during the lifespan of the four-year-old inclusive government, but is however stagnating owing to a number of challenges.
The government has also succeeded at keeping inflation, currently at 3.24 percent, in check, he noted.
But the economy is choking from lack of liquidity, a huge external debt, lack of foreign direct investment (FDI), as well as external support from institutions such as the World Bank and sanctions imposed on Zimbabwe by the European Union and the United States, Biti said.
Biti unveiled a 15-point plan upon which the economy's revival will be premised, including elements such as macro-economic stability, deepening the government's revenue base, controlling expenditure and attracting FDI.
Others included improving industrial competitiveness, savings mobilization, improving agriculture and food security, leveraging the country's abundant mineral resources and putting in place social safety nets. Endi
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