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Alba Iulia
Monday, February 24, 2020

World Bank cuts Zambia’s expected GDP growth projection for 2018 to below 4 %

Economy World Bank cuts Zambia's expected GDP growth projection for 2018 to below...

World Bank Country Manager Ina Ruthenberg  with Finance Minister Magarate Mwanakatwe
World Bank Country Manager Ina Ruthenberg with Finance Minister Magarate Mwanakatwe
The World Bank expects Zambia’s economy to grow less that 4 percent this year, lower than an April projection of 4.1 percent, it said on Thursday.

“Economic growth in 2018 is projected to be below 4 percent reflecting the poor agricultural harvest, lower copper prices and fiscal debt challenges that are crowding out private sector growth,” the World Bank said in a report.

The World Bank said in April that Zambia’s economy is forecast to grow 4.1 percent in 2018 and 4.5 percent next year, lower than previous projections by the lender, because of the expected impact of poor rains.

Meanwhile, the World Bank has said that Zambia’s economic growth numbers “are not exciting”. Speaking during the launch of the 11th Zambia economic brief at Hotel InterContinental in Lusaka yesterday afternoon, Ruthenberg explained that “on the broader macro-economic front”, Zambia’s economy was still expected to grow this year.

“But frankly, the growth numbers are not exciting. Zambia needs to grow by seven per cent per year to reduce poverty and that’s what we all want for Zambia. In the present, you are hovering around half of that. So, that’s not really where we want to be as Zambia. We all know that most of the challenges are related to the fiscal and debt situation – it impacts so many things and above all, it impacts job creation,” Ruthenberg observed.

“So, the challenges…Zambia is not only facing them alone. There are a number of countries who face very similar challenges. But what we would like to point out is to recognise the challenges and to really take them head-on, to be bold about them. The government has announced some bold measures for fiscal consolidation and we felt that was a very important step – we very much welcome that announcement. So, what are we waiting for now? Well, the obvious – the implementation.”

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5 COMMENTS

  1. IBRD why are you giving mixed messages. When this PF government took over in 2011, it found the economy growing at 6.7%. It is now at almost half the growth rate and you still can not call a spade a spade.
    Local Council workers have not been paid, Museums Board employees have not been paid for months and RTSA employees are still waiting for salaries and you can not call a spade a spade.
    Your sister organisation the IMF can not agree a programme with Zambia and you still can not call a spade a spade.
    Donors have frozen support to the Cash Transfer Scheme because of fraud and you still can not call a spade a spade. What message do you want to communicate Dr. Chinzara in you Zambia debt brief.

    • And zambians will celebrate… 1..2..3…
      Others will be saying i feel vindicated that we are been told that we are classified poor.

    • The World Bank has recognized Fiscal Consolidation as problems for Zambia. Dr Chinzara in my view is not contradicting IMF. In his Presentation Dr Chinzara didn’t discuss Donor Aid and Chinese Projects and the fraud,corruption and Embezzlement of Funds. Check the text.

  2. Two wise men came from the east after the death of two important people. The wise men from the East still had that property grabbing mentality after someone dies. They had not worked had for their new found power. They started to do what easterners do, eat, drink and plunder. If there is anything that one managed to do is change the name of his party to the Plunder Front Party.

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