The International Monetary Fund (IMF) has said that Zambia’s economy is performing well with Gross Domestic Product (GDP) projected at 6.6 per cent this year.

This is after an IMF mission visited Lusaka from September 2 to15, 2010 to conduct discussions for the fifth review under the Extended Credit Facility.

According to a statement released by the IMF yesterday, mission chief for Zambia George Tsibouris said Zambia’s economy had been boosted by a record bumper harvest, a rebound in tourism, continued copper price increments and construction.

Mr Tsibouris said this year’s bumper harvest had helped bring down inflation to 8.2 per cent at the end of August while the trade balance had been in surplus for 12 consecutive months, primarily as a result of strong copper exports and that the current account deficit was projected to narrow to 2.4 per cent of GDP.

He said international reserves remained strong at about 3.3 months of imports and that there were signs of improved financial sector conditions with credit to the private sector slowly picking although non-performing loans remained high.

“Macro-economic policy implementation has contributed to strong economic performance so far in 2010. As at the end of July 2010, the fiscal programme is broadly in line with original plans,” he said.

He said any repercussion on the exchange rate stemming from the recent economic difficulties in Europe had been handled well by the Bank of Zambia, which had managed liquidity conditions with a view to containing inflation while providing an enabling environment for robust economic activity.

“Growth is expected to remain strong in 2011 and over the medium term. There is some risk of rising inflation towards the end of 2010 and into 2011, given the onset of the agricultural season and still high non-food prices,” he said.

Mr Tsibouris said that the current account deficit was expected to widen to almost four per cent of GDP in 2011, as large energy and infrastructure projects with high import content come on line.

[ Times of Zambia ]

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15 COMMENTS

  1. Independent people are seeing what the Govt and people of Zambia are doing(working hard).I cant wait to go back home and be part of this development.Only economic spectators and NOT participants, cant see the progress.

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  2. It is now clear that things are not favoring my President Sata and God is against his dream. Zambians and the world community are seeing a success story for RB. From Japan to the Global multilateral institutions its all accollades for RB and his Zambia.What issues are we going to campaign on with these landmark developments across the country of Hospitals, new theaters, maternity wards, schools, Roads networks, Port hubs, railways and jobs being created daily? If The international community and their multilateral institutions have not been corrupted by MMD or RB being one of them from his UN years contacts, then we are in trouble.Its time for change of strategy to move an apathetic voter in Zed too comfortable with MMD machineries.

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  3. Can more insults help our pact against this pro-development ambitious RB????? Now i see why MMD propagandists here are unreservadly confident of crashing our pact in 2011.Where is my father Bwalya Arch-Bishop Mpundu to give us missing momentum?

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  4. Mpombo’s political career over

    GEORGE Mpombos’s political acrobatics has finally come to its end. At first he thought that the Patriotic Front would welcome him with both hands but fortunatley, after his expulsion from MMD, the PF discovered that Mr Mpombo’s was a selfish man without credibility and persuasion.
    The people of Kafulafuta were not surprised to see Mr Mpombo become Post newspaper’s most reliable source in recent times.The Post trusted everything he said as gospel truth, but of late Zambians have become fed up with his lies and Mr Mpombo’s uncalled-for attacks on the ruling party.

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  5. At the moment, Mr Mpombo’s expulsion from MMD has caused panic among the political well-wishers who backed him to attack the MMD Government. Mr Mpombo had promised them that his government-in-making would allow and protect their bad behaviour.
    Similarly, the people of Western Province have also discovered that Mr Mpombo was working with members of the clergy to destabilise the country for their own selfish ends.
    The electorate in Kafulafuta are anxiously waiting for Mr Mpombo to announce his future plans.

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  6. record bumper harvest, tourism, construction industry, exchange rate handled very well by bank of zambia and inflation contained. its real its happening for all to see only fools will turn a blind eye like HH

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  7. Just wait and see – some PF kaponya will say that the IMF have been given brown envelopes by RB. Now if Zambians are going to throw all this away and usher in the Titanic that is PF then they deserve all the calamities that will befall upon them.

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  8. The Americans say ” If it ain’t broken don’t fix it”. The devil you know is better than the angel you do not know. Dr. Kaunda warned us in 1991 that do not make costly experiments with leadership. Instead we called him ‘fonko fonko’. The Great Old man said ” ine nalifonka mumenso imwe mufukafonka pamala” And it came to pass when Dr. Chiluba wanted a third term Zambians were thinking much more from their bellies than what the Constitution said.

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  9. # 1 to 10 Well said, 2011 will be easy for RB, Independent views are cleay about the perfomance of our economy, this is not by accident but as a result of the able and focused leadership of this Government. I ve just been checking Lusaka most of the PF strong suppoters have left to join MMD, Bane, PF ekupwa ukukwine.

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  10. The only thing the party-in-waiting can give us are excuses for wife-battery, excuses why thieving MP’s shouldn’t be arrested.. Zambians, see and learn. Vote wisely next year. The IMF are the donors RB is accused of having told off, reconcile that. How can they, if they were told off manage to paint a good picture of RB’s govt if it was not really good?

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  11. If our govt leaders were putting resorces in their rightful places, but most of it is plundered by those in power , Zambia would have developed ,but our leaders of the current govt are corrupt

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