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
IMF revises Zambian growth figures upwards
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