IMF Cuts Zambia’s 2024 Economic-Growth Forecast to 1.2% From 2.3%
2024-10-17 10:13:18.181 GMT
By Matthew Hill
(Bloomberg) -The economic impact of the drought in Zambia “has been greater than anticipated due to the intense electricity shortages,” the International Monetary Fund says in a statement.
An IMF team visited Lusaka from Oct. 2-15 to discuss recent economic and financial developments as well as economic policies
that could underpin the fourth review of the IMF extended credit facility.
It projects economic growth for this year at 1.2% compared with a prior forecast for 2.3% “Inflation is expected to continue increasing due to past kwacha depreciation, increasing food and fuel prices, and hikes in administrative prices.
Subdued import demand has helped
reduce volatility in the kwacha and support reserve accumulation.
Fiscal performance has been stronger than
initially envisaged due to lower domestic financing and proactive spending reprioritization,” it says