The country's annual inflation reached 500 billion percent in
Finance minister on Wednesday said
"(The economy) is going to decline and it will be similar to the 2007/08 but this will be worse because we are dollarized so we do not have anything or a policy that will stabilise the economy immediately like what happened in 2009," Nyarota told industrialists at the
The economy is stuttering after struggling to attract investment in the aftermath of elections last July that extended President
Government predicted a 6.1 percent GDP growth in 2014, but the
Nyarota said the country debt arrears, estimated at
Coupled with lack of foreign direct investment and tight liquidity, the economic situation was deteriorating as evidenced by slumping industry capacity utilisation, company closures and retrenchments, he said.
If government and other stakeholders take the right approach, the economy has great potential, Nyarota added.
"The other route is that we take corrective action. Yes we have (the government's five-year economic blue print) ZimAsset but everyone has to come together to make it work. We have to look at the actual causes of the decline," he said.
Nyarota said addressing structural bottlenecks which include deteriorating infrastructure would benefit the economy.
"Once that is done, any economic blueprint can take off easily," he said.
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