• So far the performance has been good and it’s full of promise.
• The Kwacha has strengthened against major convertible currencies such as the US dollar, which is good for our exchange rate.
• Government has also been trying to restructure the debt by engaging IMF and World Bank.
An Economist has observed that the country’s economy exhibited some form of stability in the first half of 2022.
Speaking in an interview with Money FM News, Mathews Muyembe said this is evidenced by the strengthening of the Kwacha against major convertible currencies, and a decline in inflation rate to a single digit, which will result in the general reduction in commodity prices.
Mr. Muyembe noted that government has also been trying to restructure the country’s debt by engaging the International Monetary Fund (IMF), World Bank and private sector creditors, as well as China coming on board.
He said the country has very positive sentiments, with the mining industry also focusing to ramp up production, thereby creating more jobs.
“In terms of domestic performance, obviously we are yet to see how the second half will play but so far in the first have we seen currency has strengthened, the Kwacha against major convertible currencies such as the US dollar, which is good for our exchange rate.”
“We have seen inflation come down to single digit, which is good because what that does is that the pace at which prices increase on average for commodities has reduced and essentially what you get in the long term is the general reduction in commodity prices,” Mr. Muyembe stated.
Mr. Muyembe is hopeful that the country will attain its Gross Domestic Product (GDP) Growth forecast for 2022 because Government is focusing on all critical sectors which have the capacity to grow and turn the economy around.
“We can see businesses coming alive overall, we are set on a very good trajectory to recover hopefully in the second half of the year, as now plans are being implemented and we see this aggressive zeal by government to ensure that even the mining policy and also what is happening around the agriculture sector is also functional.”
“Government is touching on all critical sectors which have the capacity to grow and turn the economy around, create more jobs, attract more Foreign Direct Investment, more local sector participation, so I think so far the performance has been good and its full of promise and we are hopeful that as we get to the end of the year, in terms of our GDP Growth forecast, we should be able to get to where Bank of Zambia and Ministry of Finance have projected that we should be able to get as an economy,” he added.