LONDON (Zimbabwe Investor) - The World Bank has forecast a 7.1% 2010 Gross Domestic Product growth rate for Zimbabwe in line with the Finance Minister’s own projections of 7% made in his Budget Statement presented in December 2009.

In their Global Economic Prospects Sub-Saharan Report for 2010, the World Bank puts Zimbabwe in second place after the Republic of Congo, whose GDP is expected to grow by 11%, but first in the SADC region. Zimbabwe’s growth figure for 2010 nearly doubles the average for the entire sub-Sahara Africa of 3.8% forecast in the same report which also expects Zimbabwe to go on and register a 6.3% growth in 2011.

Looking back to 2009, the World Bank report notes that Sub-Saharan Africa as a major commodity exporting region, lower commodity prices, declining export volumes, as well as lower tourism revenues, and declining remittances undermined income and private consumption. The weak external demand for commodities, excess capacity, scarce credit, and tight liquidity all led to delays and scaling back of investment spending.

Zimbabwe’s economy is expected to have a strong growth in the mining sector of around 40% through the improved production in platinum and gold. Agriculture was expected to grow by 10% but an inconsistent rainfall pattern could see that drop to as low as 2%.

Zimbabwe is however currently reeling from a US$6 billion debt and is expected to register a -23.6% current account balance deficit in 2010. Debate is currently raging in the country should apply for the Highly Indebted Poor Country (HIPC) programme as way to deal with its debt problems to pave way for an accelerated double digit growth.

Finance Minister Tendai Biti is in favour of the HIPC route and argues that the country could be achieve growth rates of 15% while those opposing are arguing that Zimbabwe has enough natural resources to balance its investment requirements and debt servicing ability through well thought out economic policies.