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| Zimbabwe predicts economic upturn | Zimbabwe predicts economic upturn |
| (10 minutes later) | |
| Zimbabwe's first budget since its unity government began sharing power 10 months ago predicts a healthy economic future for the country. | Zimbabwe's first budget since its unity government began sharing power 10 months ago predicts a healthy economic future for the country. |
| Finance minister Tendai Biti said the economy would grow by 7% next year, after more than 10 years of recession. | Finance minister Tendai Biti said the economy would grow by 7% next year, after more than 10 years of recession. |
| He said growth would come from key sectors such as agriculture and mining. | |
| Zimbabwe's biggest economic problem, stratospheric inflation, has been all but halted since hard currencies, such as the US dollar, were allowed. | Zimbabwe's biggest economic problem, stratospheric inflation, has been all but halted since hard currencies, such as the US dollar, were allowed. |
| Turnaround | Turnaround |
| The forecasts are in sharp contrast to the rest of this decade's performance. The International Monetary Fund estimated that during the years of President Robert Mugabe's policy of reallocating land, the economy shrank by more than 40%. | The forecasts are in sharp contrast to the rest of this decade's performance. The International Monetary Fund estimated that during the years of President Robert Mugabe's policy of reallocating land, the economy shrank by more than 40%. |
| Mr Biti said government revenues were improving from about $4m in March to $90m in June. Despite the improvement, total revenues for the March-to-October period were $685m, below the government's estimate of $789.8m. | Mr Biti said government revenues were improving from about $4m in March to $90m in June. Despite the improvement, total revenues for the March-to-October period were $685m, below the government's estimate of $789.8m. |
| But for many living in the country, life has improved dramatically. Inflation, which was out of control at the start of the year, is forecast to be in single figures this year and next. | But for many living in the country, life has improved dramatically. Inflation, which was out of control at the start of the year, is forecast to be in single figures this year and next. |
| Last year, it was barely possible to find anything in the shops, let alone have the millions of Zimbabwean dollars needed to pay for any basic goods. As one shopper in the capital, Harare, put it: "Life was difficult last year everything was too expensive for us. Now, the shops are full and a loaf costs 85 cents." | Last year, it was barely possible to find anything in the shops, let alone have the millions of Zimbabwean dollars needed to pay for any basic goods. As one shopper in the capital, Harare, put it: "Life was difficult last year everything was too expensive for us. Now, the shops are full and a loaf costs 85 cents." |
| The power sharing agreement, between President Mugabe and his arch rival Prime Minister Morgan Tsvangirai, is not an easy one. Mr Biti is from the prime minister's Movement for Democratic Change party, while the central bank governor, Gideon Gono, is a Zanu-PF supporter. | The power sharing agreement, between President Mugabe and his arch rival Prime Minister Morgan Tsvangirai, is not an easy one. Mr Biti is from the prime minister's Movement for Democratic Change party, while the central bank governor, Gideon Gono, is a Zanu-PF supporter. |
| What do you think of this first budget from Zimbabwe's unity government? If you are living in the country, how do you see it affecting you? | |
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