Features

2019 in review: A tough economic year

MINISTER of Finance Bwalya Ng’andu is targeting to achieve a real gross domestic product growth rate of about three percent next year.

BENEDICT TEMBO, Lusaka
POOR rainfall in the 2018-2019 rainy season and other factors threaten to reverse Zambia’s economic gains.
For a country whose economy picked up slightly in 2018, recovery has been constrained by a poor agricultural harvest, lower copper prices and macro fiscal challenges that have affected private sector activity, says the World Bank.
According to the World Bank’s 12th Zambia Economic Brief, copper production, which accounts for the bulk of the output of the sector, was weak in the first quarter of 2019, partly reflecting a season slowdown during the rainy season, lower than expected copper prices and disputes between the sector and Government on tax policy changes in the 2019 budget.
As a result, 2019 has resulted into a sluggish economic performance as business has not been favourable.
“The faster recovery was undermined by a lower crop harvest and fiscal slippages that led to the accumulation of new public expenditure arrears and government borrowing at high yields and impacted private sector activity,” the World Bank says.http://epaper.daily-mail.co.zm/



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