Nascent economic recovery underway in Zimbabwe- IMF

WASHINGTON, July 2 (Reuters) - Improvements in economic policies in Zimbabwe have led to a "nascent" recovery in the country's economy, the IMF said on Thursday following discussions with the authorities.

"A more liberal economic environment, price stability, a deepening in financial intermediation, and increased access to foreign credit lines underpinned a pickup in economic activity," the IMF said in a statement. "The public finances benefited from the recovery in economic activity and consumption," it added.

The IMF said financial support from donors will be needed to clear Zimbabwe's arrears to the fund before the country can qualify for IMF aid.

(Reporting by Lesley Wroughton; Editing by Chizu Nomiyama)