Policy Monitoring and Research Centre- PMRC- Executive Director Bernadette Deka has praised Government for reducing inflation rate from double to a single digit. Ms Deka said that it was gratifying that the rate of inflation which hit the highest at 22.7 in February this year has come down to 7.5 %.
Ms Deka said that PMRC was further encouraged by growth in Gross Domestic Product- GDP, adding that this was an indication that the Zambian economy is resilient.
Ms Deka said that the move will lead to sustained economic growth, improvements in terms of trade and a stronger exchange rate if supported by sound fiscal and monetary policy.
The PMRC Executive Director said that while her institution acknowledged that a reduction in inflation rate may not necessarily result in reduction in food prices, it is an indication that prices are increasing at a reduced rate.
She told ZNBC News that the effect is that the general citizenry can benefit from stability in commodity prices.
And an economist has said that the 4 %t GDP growth rate recorded in the first half of 2016 by Zambia is an indication that the economy is growing. Shabdin Mweemba said that the growth, which is higher than the projected growth of around 3 percent, gives the country hope that 2017 will be a good year.
Mr. Mweemba told ZNBC News in an interview that there is need to put more efforts in various sectors of the economy to register further economic expansion.
Mr. Mweemba added that government should focus on increasing productivity levels in the agriculture sector.
Meanwhile Mr. Mweemba said tha5t he was happy that the country is closing the year with a single digit inflation rate of 7.5 percent. He has however advised government to now focus on creating employment for citizens.
Mr. Mweemba said interest rates on the contrary are expected to rise even further because government is offering good rates on bonds and treasury bills resulting in less money in circulation.