Zambia’s economy expected to grow at 7%

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The Moody’s Investors Service annual credit report has indicated that strong economic growth and robust government fiscal strength continue to support Zambia’s credit profile.


The report states that Zambia’s economy continues to register robust growth rates averaging 7.8 percent per annum since 2005.


“We expect that economic growth will remain at around the same level in the coming years, supported by the development of the infrastructure projects,” the report stated.


The report however states that the small size and relatively undiversified nature of Zambia’s economy means that it was vulnerable to adverse conditions in the agriculture sector and volatility in global copper prices.


“Government’s fiscal position is also strong, though deficits have increased and high dependence on a single commodity, copper, leaves Zambia exposed to adverse price movements,” read the report in part.


With Global Domestic Product estimated at 26.3 billion in 2014, Zambia’s economy is on par with the Sub-Saharan Africa median but ranks below the median for sovereigns globally.


Moody’s Investors Service expects that Zambia’s real economic growth will likely remain strong rising above seven percent in 2015, slightly higher than the government’s estimate for 2014 of more than 6.5 percent.


This is according to statement released to ZANIS in Lusaka today by Ministry of Finance Public Relations Officer, Chileshe Kandeta.



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