IMF Predicts 6% Economy Growth for Zambia

By Eddyson Lugangwa Posted 06 November 2006 @ 12:03 pm EET     Print     Reprint     E-Mail     Comments

Lusaka (IBTimes.com) - Zambia's economy was on track to grow by six percent in the coming year as a result of a resurgence in mining and agriculture, according to the International Monetary Fund.

On Thursday after its delegation completed a visit to the country, the IMF said Zambia's monetary expansion had been faster than previously projected.

"Inflation, at 8 percent, is at its lowest point in three decades," said the head of the IMF mission Francisco Caramazza. "The renaissance of the copper sector and extensive debt relief have remarkedly strengthened the economy's prospects," he said.

Under the terms of an IMF debt relief programme, Zambia earlier this year saw $3.8bn of the $7.1bn it owed international creditors cancelled. Zambia has attained positive real gross domestic product (GDP) of 5 percent in the last three consecutive years, which the IMF said was very impressive for the country.

"This is expected to rise to six percent this year, mainly due to significant expansion in the mining and construction sectors and a strong recovery in agriculture," the IMF said.

Zambia's President Levy Mwanawasa, who was re-elected for the second and final term five weeks ago, has won praise from the international community for introducing fiscal discipline in government and reduced corruption.