Zimbabwe’s economy is projected to rebound from 1.2 percent growth to 4.8 percent next year, driven by a cocktail of reforms, improved agriculture production and higher commodity prices, the treasury announced on Tuesday.
The country which has been led by President Robert Mugabe since 1980 is currently experiencing a liquidity crisis that led to limits on daily cash withdrawals and resulted in civil servants being paid late last month.
According to a treasury budget document, the southern African nation’s economy had shown resilience in the face of the worst drought in decades but is expected to rebound next year.
Projections indicate that growth will also depend on increased financing for agriculture, incentives for exporters, better mineral prices, improved investment climate, re-engagement with International Monetary fund and other global funders and positive gains from measures taken to cushion local industry.
The sub-Saharan African nation needs to repay $1.8 billion of debt to the International Monetary Fund, the World Bank and African Development Bank to be able to resume borrowing.
The country will soon introduce so-called bond notes, pegged to parity with the US dollar and beginning with denominations worth from $2 to $5, central bank Governor John Mangudya said last week.