The World Banks says
"The external arrears continue to stifle economic growth by limiting the country's access to new financing," she said.
According to the
Ms Piffaretti cited challenges in the country including tightening credit conditions, high cost of capital exceeding returns, low industrial and farm productivity, vulnerable smallholder agriculture, low domestic savings and mineral dependence among others.
She said growth is weakening. However, in his 2014 budget Minister Chinamasa projected 6,1 percent growth this year. The
Lack of funding has stunted growth in manufacturing with the
Like many other countries across the continent,
There has not been much change in the structure of the economies in
Some dynamics are changing and the
Ms Piffaretti called on the Government not to neglect growing domestic demand and to improve productivity of small farms and household enterprises.
She also implored that Government not to neglect important sectors such as services and to get a boost from external demand for commercial agriculture, minerals, tradable services, for instance tourism as well as to take full advantage of technological transfer, link to global value chains, and funding from FDI.
It was also critical to focus State activity on services provision, public investment and long-term management of rents, which come from exhaustible resources.
The Bretton Woods institution further emphasised the need to create linkages between mining and agriculture, sectors driven by external demand, and the manufacturing sector and services, which are driven by internal demand.
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