Zim forecasts higher economic growth

2010-09-24 10:42

Harare - Finance Minister Tendai Biti says Zimbabwe's economy will grow by 8.1% this year on the back of increased tobacco production, up from his previous forecast of 5.4%, reports said Friday.

"In the mid-term budget, we announced that we had revised our projected growth rate from 7.7% to 5.4% in July because of slow performance of the economy in the first half of the year," state-run daily, The Herald quoted Biti.

"I am pleased to advise a major rebound in the second half of the year. Growth projections for December 2010 would be 8.1% because of a serious rebound in agriculture." Biti singled out the tobacco crop, the report said.

Zimbabwe's tobacco selling season ended early this month with a record 122 million kilogrammes having been sold.

This years' crop output surpassed the initial 77 million kilogrammes anticipated at the start of the year.

According to government estimates, tobacco accounts for more than 50% of agricultural exports - which translates to about 30% of Zimbabwe's total exports.

Zimbabwe's economy is showing signs of recovery since the formation of a power-sharing government between long-ruling President Robert Mugabe and his rival Prime Minister Morgan Tsvangirai.

The southern Africa country's economy grew by 4.7% last year, ending 12 years of contraction.