The Bank of Zambia says the fiscal deficit for the year 2019 is expected to narrow further in 2019 to 6.5% of GDP from the estimated 7.0 percent of GDP in 2018.
Bank of Zambia Governor Dr. Denny Kalyalya says the 7.0 estimate is against a target of 6.1% and an actual out turn of 7.8% of GDP in 2017.
Dr. Kalyalya therefore says the speedy implementation of the Austerity Measures and strict adherence to the 2019 National Budget are necessary to moderate the threats to the stability of the financial sector, private sector liquidity challenges, debt distress, government financing and inflationary pressures.
“However, as reflected in the ministry of Finance November 2018 statement, domestic arrears rose to K14.7 billion in June 2018 from K13.9 billion in March 2018.”He said.
Dr. Kalyalya said this in his monetary policy statement recently in Lusaka adding that the global economy is projected to grow by 3.7% both in 2018 and 2019 from 3.9% in 2017.
He says the Global economy has continued to register positive growth has been anchored on the strong growth in the United States and the Chinese economy, is expected to support copper and prices and Zambia’s Copper export Earnings.
“However, the downside risks associated with trade wars and uncertainties surrounding Brexit have heightened over the medium term,” the Central Bank governor said.