Growth estimates for the
Zambian economy have been
revised upwards following a visit
to the country by an International
Monetary Fund (IMF) team led by
Byung Jang.
According to Jang, the “rebasing”
of the national accounts “has
revealed that the economy is 20-25%
larger than earlier estimated, growth
is projected to remain strong at
6.5% in 2014, and the medium-term
outlook is supported by ongoing
expansion in copper production.”
There are, however, some warning
signs – many of which impact
directly on the freight forwarding
and clearing industries.
“Fiscal and exchange rate
developments point to significant
vulnerabilities,” said Jang.
The recent steep depreciation of
the kwacha is raising inflationary
pressures and expansionary fiscal
policy has created large budgetary
imbalances, warns Jang.
CAPTION
Copper bound for export – the spark behind the Zambian economy
