The Zimbabwean government needs to focus on containing spending while stabilising the exchange rate in order to achieve sustainable economic growth rates, findings by the International Monetary Fund, ( IMF), have revealed.
In a statement after its staff visit to assess the country’s economic reforms under a staff monitored programme , the Bretton Woods Institution noted with concern the need to tackle resurfacing macro –economic challenges in the form of weakening confidence and foreign currency market instabilities.
While it has pledged continuous support to the government, the IMF recommended tight expenditure control systems with focus being on the need to facilitate the growth of the private sector.
The economy this year expected to register negative rates on the back of the drought and subdued production, the need to stabilise the exchange rate was also noted by the IMF as key to economic growth.
“Credible and workable policies are also needed to ensure that the economy is back on track to recovery in the short to long term”, says the IMF
Zimbabwe is forging ahead with the IMF staff monitored programme that is focused on the need to embrace sound but vibrant economic reforms. During its visit to the country the IMF team held meetings with key government officials, the central bank as well as captains of industry and commerce.