The Ministry of Finance of Zambia has recently issued a statement on the economy indicating that GDP growth in 2017 is projected to rise to 4.3% against an initial forecast of 3.4%.
“This is as a result of increased agricultural output, recovering generation for electricity and higher mining output supported by better prices and power supply. Other sectors that are supporting growth are construction, wholesale and trade and tourism sectors,” the statement reads.
In relation to inflation, the Ministry reminded that the rate had fallen to 7.5% at the end of 2016 and reduced further to 6.5% in May 2017 and is projected to remain in single digits in 2017.
The lowering inflation is being supported by the continued stability of the exchange rate, lower food prices in view of a good harvest and improved market confidence in the country’s policy direction.
As outlined in the Seventh National Development Plan, GDP growth over the medium-term is forecast to rise to at least 5.0%, while inflation is projected to be within the target range of 6-8%.
Growth will be mainly driven by the agriculture, energy, mining, construction and manufacturing sectors.