Zimbabwe's economy should grow 7% this year, up from a past forecast of 4.8%, thanks to $1 billion in foreign investments and expected donor assistance, says finance minister Tendai Biti.

Biti says Zimbabwe faces huge challenges because of its "crippling" public debt of $6.2 billion, adding that there is little chance of the country getting its own currency back. Zimbabwe’s currency was abandoned in favour of the dollar.

Its economy has an estimated $1.9 billion current account deficit.

The International Monetary Fund (IMF) in its annual review of Zimbabwe's economy, says there are signs that economic and humanitarian conditions are improving. IMF however warns economic growth could slow significantly in 2010 if the country fails to take corrective measures to repair the economy.

Source: Reuters