Zanaco Bank Plc has lamented that the increasing Zambia’s debt levels will have a negative impact on the economy as government will not be able to finance other sectors of the economy.
The bank also says Zambia’s economy is likely to record a positive growth of about 4.1% despite intensified risks arising from the fiscal challenges and the change in climate.
Speaking at the breakfast meeting in Lusaka to review the economic performance of the country’s economy in the first quarter of 2019, Zanaco Bank Head Economic Researcher Dr. Patrick Chileshe says the financial institution has projected a 4.1 percent economic growth for the year 2019.
Dr. Chileshe says the projected number is likely to drop as a result of the dry weather being experienced in the country.
He says implementation of the goods and services tax will also impact on the country’s economy because firms in the country will not be able to claim the value added tax on inputs.
He says the adverse weather pattern being experienced in the southern parts of the country will negatively affect the Agro sector output for this year as most farmers will have a low yield.
He says the adverse weather pattern will also affect the production of electricity, as water levels in the Kariba dam have continued to go down.
The bank further expects the volatility of the kwacha to be high especially in the second quarter of 2019 to about K13 to K14 if no policy measures are taken early by the government.

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