The analysis of World Bank’ on Zambia’s economy indicates a slow growth. The apex bank says the country’s economy will grow slower than previously thought. It says the country’s economy will experience a 3.8 percent expansion instead of the previously forecasted 4.1 percent.
The Apex bank said the reasons for the slow expansion are weak performances of the mining, services and construction sectors. The forecast for 2018 and 2019 given by the World Bank are 4.3 and 4.7 percent respectively.
According to the bank’s statement, “the country needs to seek ways to improve its debt management and ensure economic growth is rooted in a sustainable foundation. It also said loans must be invested wisely to stimulate growth.
According to the bank, “Zambia’s economic recovery had been subdued in the year 2017 despite the fact that the country had a bumper harvest, easing monetary policy and great improvement in electricity generation. It was due to weak performances by the mining, services and construction sectors. In 2017, growth will occur modestly to about 3.8 percent and improve to 4.3 percent and 4.7 percent in 2018 and 2019 respectively. The forecast is based on the grounds that the Zambia government will continue to implement its economic reform program, known as the Zambia Plus.
The World Bank during its 10th Economic Brief for the country noted that Zambia, in 2017, took a bold step to publish a medium-term debt strategy for the country as well as opportunities to refine it and change it to a working strategy.
The brief was titled “How Can Zambia Borrow with Sorrow?”The bank proposed that the strategy employed shouldn’t just guide to slow than debt accumulation, but help to manage the risks associated with the country’s debt portfolio.
The report presented by the World Bank, clearly states that the country should come up with an internal borrowing plan which it can use to pursue its medium-term debt strategy. Many countries borrow to finance development and investments, so Zambia is not different from them. Zambia is one of the many Africa countries with huge infrastructure needs that require immediate intervention.
The report presented by the bank on the country noted that it took Zambia, over a decade to record a major debt relief, but that the increase in debt accumulation of late has again placed the country in the spotlight.