Harare — GOVERNMENT has released the 2006 economic outlook.

Economic Development Minister Mr Rugare Gumbo says Government would this year concentrate on an effective and systematic coordination of its policies and programmes for sustainable economic growth.

Haphazard implementation of economic policies has slowed the pace of economic recovery in the past, hence the need for a roadmap.

"My ministry will play an important role in coordinating the implementation of Government policies and development programmes to ensure that our growth prospects are attained," he said in a report titled: "Zimbabwe's Economic Outlook for 2006 and Key Economic Policy Measures to Address Challenges Facing the Economy", released yesterday.

"Already, the ministry has finalised the National Development Priority Plan for 2006. The NDPP lays down the national policy thrust and identifies key national programmes and projects across all sectors of the economy for implementation this year."

Previously, Government has been hamstrung by the lack of adequate monitoring and accountability systems, which created a huge gap between policy decisions and their implementation.

This year, the economy is forecast to grow by 2 percent spurred by improved performance in agriculture, mining and manufacturing.

And to guard against last year's failure (GDP fell by 7 percent), it is critical for Government to exercise extreme fiscal discipline, and ensure policy initiatives are instituted as reflected on paper, Mr Gumbo said.

Boosting investor confidence, elimination of price and foreign currency distortions and forging stronger partnerships with the private sector would also be key in fighting the obtaining economic challenges.

He said: "Government recognises the role of the private sector as the engine of economic growth. In this regard, Government is committed to close cooperation with the private sector.

"The challenges facing the economy require that we develop a culture of working together with a common shared vision in the interest of the nation."

Last year, the economy was projected to grow by between 3,5 percent and 5 percent but shrunk by similar margin due to the combined effects of sanctions and drought.

Minister Gumbo said productivity in the agricultural industry was expected grow by 9 percent this year spurred by improved maize and cotton production, up from the 12 percent decline registered last year.

Between 350 000 and 400 000 tonnes of "white gold" are expected to be produced while improved maize availability will effectively reduce the food import bill.

The mining sector, which accounts for 4 percent of Zimbabwe's GDP and a third of foreign currency earnings, is also projected to register a 15,2 percent growth while capacity utilisation is expected to go up on the back normal agricultural season and rigorous promotion of value addition and import substitution.

Minister Gumbo attributes this projected growth to robust performance in the gold and platinum sectors.