HARARE: Zimbabwe’s Finance Minister Patrick Chinamasa on Thursday announced a US$4.4 billion national budget that pins the country’s economic recovery prospects on the thawing of frosty ties with the international community.
Presenting the 2016 budget before parliament, Chinamasa projected that the economy is expected to grow by 2.7 percent next year underpinned by the anticipated strong performances by the tourism, financial services, construction, communications and agriculture sectors.
This is against the 1.5 percent economic growth anticipated this year. Consumer inflation is expected to average minus 1.2 percent in 2016, signalling the country’s slow emergence from deflationary conditions that have characterised the economy since 2014.
Chinamasa forecast that revenue inflows for 2016 will stand at US$3.85 billion, leaving a deficit of US$150 million to be funded through local borrowings
He said economic recovery would hinge on re-engagement with international lenders such as the International Monetary Fund and World Bank. The international lenders pulled the plugged on Zimbabwe in the early 2000s after the Harare authorities failed to repay debts.
