Zambia's economic outlook will remain favourable, Bank Governor

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LusakaTimes.com - Aug 13th, 09:00

Zambia’s economic outlook will remain favourable in the second half of 2013 due to continued strong domestic investments in key productive sectors. 

Bank of Zambia (BoZ) Governor Michael Gondwe said Zambia’s economic prospect for the second half of 2013 had remained favourable driven by continued investments in mining, manufacturing, tourism, communication and infrastructure.

In a statement released in Lusaka yesterday on Zambia’s Recent Economic Developments, Dr Gondwe said the anticipated high food prices on account of anticipated higher regional and domestic demand for food items and pressure on the exchange rate poses a challenge to the country’s inflation rate.

“The Bank of Zambia will continue to monitor global and domestic developments and take appropriate measures aimed at maintaining price and financial system stability. This will be complemented by prudent fiscal policy,” he said.

Commenting on the first half of 2013, Dr Gondwe said the trade surplus in the period under review marginally declined to US$356.0 million from $364.6 million attained during the second half of 2012.

“In an effort to enhance the integrity of balance of payment statistics, on June 25, 2013 the Government issued Statutory Instrument No.55, whose main thrust is to facilitate a much closer monitoring of foreign transactions of all types, especially data on the country’s external sector through better reporting of balance of payments,” he said.

Dr Gondwe said domestic credit which included foreign currency loans, rose by 32.6 per cent to K26, 164.7 million in June 2013 from K19, 726.8 million as at December 2012.From LusakaTimes.com