In its annual review of Zimbabwe's economy, the International Monetary Fund said there were signs that economic and humanitarian conditions were improving following a decade of steep economic decline and hyperinflation.
After a contraction of about 14 percent in 2008, growth resumed to about 4.0 percent last year amid a pickup in manufacturing and services.
Meanwhile, most schools and hospitals have reopened and incidence of cholera has declined, the IMF added.
It said a track record of good policies will help restore donor funding to Zimbabwe and could eventually lead to the cancellation of the country's foreign debts.
Zimbabwe's economy has stabilized since a unity government formed by rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai last year adopted the use of multiple foreign currencies to replace a worthless local dollar.
The IMF said the multi-currency system "would serve Zimbabwe well in the coming years."
It said the Zimbabwe dollar could be reintroduced once the government had established a track record of sound policies and adopted a framework focused on price stability.
The IMF report cautioned that the outlook for 2010 was "highly uncertain" and urged the authorities to reduce the wage bill and non-essential spending to preserve gains made so far.
* Angola Press
