- This Economic Report records further economic decline in 2001 compared to 2000. In recognition of the macroeconomic imbalances experienced in 2001, Government is working on a short term economic stabilisation package, and strategies for recovery and sustainable growth and development.
- As outlined by His Excellency, the President in His Inauguration Speech, the Millenium Economic Recovery Programme underpinned by Agrarian Reform remain the basis of economic policy. We need to intensify technical and financial support to farmers, to ensure orderly and increased production in the agricultural sector. But first and foremost, we need to create conditions that enable every farmer on the land to produce to maximum potential. The expected increase in agricultural production will have a dampening effect on inflation through an increase in aggregate supply.
- To address inflation, fiscal policy shall focus on strict control of Government expenditures, especially recurrent or consumption expenditure.
- However, because of the drought which we have experienced during the last agricultural season, our immediate priority will be to ensure that the country has enough food. In this regard, we are revising the 2002 budget, reprioritising expenditures towards food importation and distribution.
- Let me take this opportunity to record our appreciation of the support we have received so far from the international community, to alleviate the effects of the drought.
- Government would also like to register its profound appreciation of the initiative by the local private sector, who set up the Zimbabwe Disaster Alleviation Trust, which will complement Government efforts in the sourcing, transportation and delivery of food.
|
