By Chris Mfula
LUSAKA (Reuters) – Zambia’s economy is projected to expand 4.2% in 2023, Secretary to the Treasury Felix Nkulukusa said on Tuesday, with growth dipping compared to last year as the southern African country battles to wrap up a long-delayed debt restructuring.
Preliminary data indicated that the economy grew by 4.7% in 2022, a slight uptick from the 4.6% expansion in 2021, Nkulukusa said in a statement. GDP growth is forecast to be 4.8% in 2024 and 4.7% in 2025.
Zambia defaulted on its debt in 2020 and has struggled to agree a relief deal with lenders, with policymakers saying the delays were harming investment and pushing up inflation.
Zambia’s public and publicly guaranteed debt was $25.4 billion as at end March 2023, Nkulukusa said, with central government external debt increasing by 1.0% to US $14.09 billion from US $13.96 billion at the end of 2022, he said.
“The increase in debt stock was largely on account of disbursements received from multilateral creditors for budget support and project loans,” he said.
Zambia’s government is targeting bringing down inflation to within the central bank’s target band of 6-8% by the end of the year and achieving a fiscal deficit of not more than 7.7% of GDP, the statement said.
Inflation rose to 10.2% in April compared to 9.9% in March, the first time it has been in double figures since May 2022.
(Reporting by Chris Mfula; Editing by Rachel Savage and Alexander Smith)
