Zambia Economic Outlook
May 21, 2019Growth likely remained lackluster in the first quarter of the year, as exports fell sharply in Q1 on lower copper sales, while private sector activity continued to deteriorate in April on adverse weather conditions and money shortages. Compounding matters, Zambia’s macroeconomic stability remains precarious as the government struggles to service a soaring debt burden amid dwindling foreign exchange reserves. The kwacha’s depreciation since the start of the year has pushed up interest costs on external arrears. This, coupled with the recent climb in yields on government bonds, has diverted funds away from social programs and transfers to local authorities, weighing on households and businesses. In a bid to curb the escalation of debt, the country has delayed the receipt of USD 2.6 billion worth of loans.
Zambia Economic GrowthGrowth is set to decelerate this year on the back of a slowdown in exports amid an uncertain global trading environment, while drought conditions curtail agricultural output. External and fiscal imbalances are likely to persist given challenges to financing ongoing spending commitments and servicing the rapidly rising debt burden. Met the why particular panelists expect GDP to grow 3.1% in 2019, which is down 0.3 percentage points from last month’s forecast, and 3.5% in 2020.
Zambia Economy Data
5 years of Zambia economic forecasts for more than 30 economic indicators.
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|Bond Yield||26.00||0.0 %||Jun 13|
|Exchange Rate||13.22||0.0 %||Jun 13|
|Stock Market||0.3||0.0 %||Jun 13|
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