ZAMBIA’S growth is projected to be bright owing to a cocktail of economic fundamentals in major sectors, the International Monetary Fund (IMF) has said.
The IMF team, which has concluded its economic review on Zambia, said the country is headed for an economic rebound as agriculture reforms reach fruition, coupled with increase in power generation capacity, general economic infrastructure improvement and the global economic recovery.
According to a statement released by Secretary to the Cabinet Fredson Yamba yesterday, the growth projections will be attained in the medium to long-term.
The IMF mission was in the country from March 9 until yesterday to review the macroeconomic situation and initial discussions on steps required for the country to engage it on a formal programme within 2016 as directed by Cabinet.
“Regarding the review of the macro-economic situation, Government and the Fund have agreed that in the short term, the country faces multiple challenges such as a tapering economic growth mainly due to lower mining output as a result of low copper prices on the international market and lower agriculture and electricity production due to poor rainfall,” he said.
Mr Yamba said the two parties agreed that fiscal consolidation measures are inevitable this year.
He said Zambia and the Brentwood Institution noted that the current levels of the budget deficit are unsustainable and lead to increased future requirements for debt repayment.
“In this regard, Government is resolved to ensuring that austerity measures are implemented. Additionally, key structural reforms such as the gradual shift to cost-reflectiveness in electricity tariffs and fuel pricing will be key in reducing subsidies and streamlining Government expenses,” Mr Yamba said.
He said while Government remains committed to effecting adjustments to tariffs and prices, it is cautious not to effect drastic changes to essential services.
He said such an action would have a huge effect on the economy as a result of increased costs, particularly for those in production, and this could negatively affect the marginalised citizens.
Mr Yamba said inflation is expected to moderate towards the third quarter of 2016, as the harvest comes on stream and the base effects of the Kwacha depreciation largely experienced in the last quarter of 2015 subside.
Lusaka times get a life!!! you know this article is BIG BULL LIE!!,,,In you another article you said IMF said the Zambia economy is under pressure,,, go check mwebantu and learn one or two things
“Government finances are under immense stress. Expenditure is running far above budget, in large part as a result of fuel subsidies and contracted emergency electricity imports that together are estimated to cost the treasury about US$660 million a year at the current pace (equivalent to 3.2 percent of GDP). At the same time, domestic and external financing options have become more limited along with rising interest rates. Mounting domestic arrears are adding to concerns about debt sustainability,” the IMF said.
It added, ““tightening of monetary policy has been effective in stabilizing the exchange rate but tight liquidity conditions have contributed to persistent under-subscription of treasury bills and bonds. However, there is little scope to loosen monetary policy as long as fiscal…
“Mwebantu!” Really? That sounds like the title of a poring play. I am sticking to LT.
He who refuse’s to learn from advice MUST learn from experience
Am also suprised.
Folks just go to Mwebantu and read for yourself the truth about what IMF said about Zambia. We are in trouble bane, and our Chief Driver Edgar Lungu has no vision. This country is spending more than it can afford and we are heading for total bankruptcy
Why should we trust MWEBANTU other than LT???
What….That foreign sponsored dissident paper…..no thanks!
why is it that anybody who reports good about zambia is deemed to be a liar, stupid or useless?
do we need to hear bad every time so that we insult?
@ me
Forget the reports, look at the REALITY on the ground.
What do you see?
Second Singapore in making or uncle Bob “paradise”?
WHICH PF CARDER IS NOW RUNNING LT??? WHOEVER YOU ARE PLEASE FOR GOD’S SAKE PLEASE YOU PEOPLE ZAMBIA GOES BEYOND PF. THIS COUNTRY IS ON ITS KNEES AND EVERYONE CAN FEEL THE ECONOMIC EFFECTS OF BAD LEADERSHIP BY THE VISION LESS LUNGU. STOP PUBLISHING FALSE INFORMATION. I THINK LT YOU NEED TO START TELLING THE TRUTH.
Refreshing news for a change
Why should we trust MWEBANTU other than LT??
We love our dumb LT! Why go any where else for entertainment…sorry hard hitting news!!
IMF has ruled.
You perpetual Critics including Mmembe and Kabimba and HH and their cohorts GO AND JUMP IN LAKE KARIBA
GOOD DAY
Mwebantu and ZWD are on the same wave length. In short it’s another hopeless Upnd propaganda media. I would rather sack my balls than wasting my time reading mwebantu or zwd.
I don’t need the IMF or the PF government to tell me how bad things are in Zambia right now. I’m experiencing the difficult times right now. Things are very bad in Zambia and PF is responsible for this mess! PF incompetence has driven us back to the Kuanda days of serious hardship. I’m angry. PF will see on 11 Aug 2016. PF KUYA BEBELE!
Funny, you are the same people that were celebrating when there was a dead lock between IMF and the government the other day. IMF says Zambia is about to be boisterous and that makes you mad. So bad is good for you guys? Grow up.
Come on Zambia lets just accept a little hit of Austerity. We can joke our way through the pain of it. We are funny people! Just say yes to the conditions Your Excellency and get some relief.
The earlier report which gave a grim picture was from IMF themselves. This one is from our Sec to the Cabinet, giving a different view. The earlier report contained what IMF found on ground, whereas this one deals with assumptions. Why cheat ourselves?
This report is just one of those usual lies from Lusaka Times. This is not what the IMF said. The IMF warned that the Zambian economy is in serious trouble and needs austerity measures!
Comment:Only upnd likes bad report about zambia with a bad report,they build their compain.pls learn to say yes when it is good and no when bad things happens….i tell you come August you will see the good part of PF..