ZAMBIA’S ECONOMIC OUTLOOK SHOWS SIGNS OF STABILITY, IMF REPORTS
BY CHANDA MWANGO
The International Monetary Fund (IMF) has reported an improvement in Zambia’s economic outlook, with inflation decreasing to 12.3 percent in October 2025 and a projected GDP growth rate of around six percent.
The report highlights Zambia’s progress in recovering from years of debt distress, inflationary pressures, and fiscal instability.
Although Zambia remains classified as a low-income, heavily indebted economy in Sub-Saharan Africa, the IMF commends the ongoing macroeconomic consolidation under the government’s reform program.
Inflation, which peaked at 24 percent in 2021, has moderated due to stabilizing currency rates, improved food supplies, and energy interventions.
According to the IMF, Zambia has achieved steady external adjustment and fiscal stabilization following significant milestones in debt restructuring and the successful implementation of the Extended Credit Facility (ECF) Program.
The report emphasizes the importance of transparency in national account reporting and economic monitoring by the Zambia Statistics Agency and the Ministry of Finance and National Planning.
While acknowledging ongoing challenges such as youth unemployment, a high cost of living, and electricity shortages, the IMF notes that increased public investment and expansion in the manufacturing, information and communication technology (ICT), agriculture, and energy sectors are beginning to restore confidence in the economy.