Zimbabwe's economy is set to weaken in 2015, but there is some progress towards economic reform, the International Monetary Fund (IMF) said this week.

The economy grew by just over three percent in 2014, and forecasts for growth in 2015 have been put as low as 1.2 percent.

"Economic prospects remain difficult. Growth has slowed, and we expect it to weaken further in 2015," the IMF said in a statement on Monday at the end of a visit by officials to the country.

"The external position remains precarious, and the country is in debt distress."

Zimbabwe owes around US10 billion to external creditors. The debt means the country can't borrow money from traditional lenders like the IMF until it clears those arrears.

However, the IMF, which has been providing technical advice through a staff-monitored programme, noted some positives, including the government's decision to intensify "efforts to lay the ground for stronger, more inclusive and lasting economic growth".

It said this included lowering the wage bill, restoring confidence in the financial sector, and improving the investment climate.

Investors remain wary about the country's indigenisation laws, which compel large foreign and white-owned firms to sell majority shares to local businessmen.

Zimbabwe's current wage bill consumes 92 percent of the budget.