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Alba Iulia
Saturday, October 31, 2020

Economy is on the right track, BOZ Governor

Economy Economy is on the right track, BOZ Governor

The Bank of Zambia, BOZ, says the country’s economy has sustained its impressive performance in the past few years.

BOZ Governor Caleb Fundanga says this is reflected in a positive growth in real Gross Domestic Product (GDP), low inflation, falling lending rates and relatively stable and competitive exchange rates.

He said this when he officiated at a two day Sixth Bank of Zambia seminar for members of parliament held at Mulungushi International Conference Centre in Lusaka today.

Dr. Fundanga said last year Zambia’s economy registered a positive growth of 5.8% in real GDP which marked the fourth consecutive year that the economy had registered growth of at least 5%.

He said the key sectors driving the economy’s growth were mining, agriculture, manufacturing, transport and communications, and financial intermediaries.

The Central Bank Governor added that the good economic performance in 2006 was further reflected in the fall in inflation from 15.9% in December 2005 to 8.2% at the end of 2006. He however said inflation edged up to 9.8%, 12.6% and 12.7% in January, February and March 2007, respectively, due to inflationary pressures arising from higher prices of most non-food inflationary items.

Dr. Fundanga said BOZ anticipates inflationary pressures to subside in the coming months owing to continued implementation of appropriate monetary and fiscal policies coupled with the expected fall in food prices.

He added that the kwacha registered self correction by 21% compared to an appreciation of 26.4% in 2005 and has since stabilised.

He said this is a development that should enhance competitiveness of the country’s exports, particularly the non-traditional exports.

Dr. Fundanga pointed out that the desire of government is to enhance the economic and social achievements of 2006 through its macroeconomic objectives for 2007 which include reducing inflation to 5%, achieving a real GDP growth rate of 7%, reducing the government domestic borrowing to 1.2% of GDP and raising gross international reserves to at least 2.5 months of import cover.

He said the attainment of the desired economic benchmarks will require the input and participation of all stakeholders. ZANIS

7 COMMENTS

  1. I have been away from Zambia for 15 years and I visited the country last year. I could not believe the level of poverty in the country. In the morning when going to buy newspapers from a nearby stand, all I saw were children going to school and a very small number of workers. The economy has not generated adequate level of employment to improve the poverty levels. The govt requires to come up with a strategy of improving employment to reduce poverty. Statements like these that the economy is doing well but which cannot be translated into benefits to the population is futile.

  2. This is very disturbing? To start with, should we praise ourselves for the appreciation of the Kwacha, which by so doing it doesnt improve the livestyle of poor peaple? Why do these rich big guyz think that we all lead the same happy life?
    We should celebrate when we see that GRZ has bulit houses for our blind and disabled>>>>>>>>>>>>

  3. So the Zambian economy has grown by 20% cummulatively over the past 5 years. This is surely hard to see in anything other than Caleb’s stats. Well, they keep telling us growth in the mining, construction, services. But nothing of it ever resonates with what matters the most-consumer welfare. Can we have a clearer description/definition of what’s being measured?

  4. Zambia is indeed in a deplorable state.I visited Zambia 2 years ago and noticed that 80% of people I went to school with were all out of the country.Most top students had left.There has been a mass brain drain.So who is left to develope the country? Its mainly those guys who were at the bottom of the class.They are the ones I found holding high posts.(I’m refering to the generation born after 1964).The system in Zambia is one that frustrates intellectuals so going back is certainly not on my “To Do List”.So countrymen what shall be done with our beloved ZAMBIA!

    • i thought it was the other way round. losers run when they see problems and winners see opportunities in the same problem. nowonder intelligence is not a resonate of wisdom ultimately. my friedn renew your rusty mind.

  5. Why does Mr. Fundanga, lie like this? These said growths are invisible. We need visible development that everybody will see. I don’t need to be taken through a serious theoretical lecture for me to understand that there is growth in the country. We are sick of these lies now. People still have no jobs, no meds in health centers, food excessively expensive, no social welfare for the challenged in society. Where is the growth?

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