A Kabwe based Business and Financial Analyst says plans by the government to rebase the Gross Domestic Product will put the country at a risk of going into a debt crisis.
Rebasing an economy means revising the methods and base data used to calculate the country’s gross domestic product.
Speaking in an interview with Money FM News, Noah Kabwita says the move will also send a bad signal to would be investors that participate in government bonds and securities.
He further explains that rebasing the GDP will also put a lot of pressure on the treasury by defaulting to settle the Euro bonds that start to mature next year.
In 2018 during her budget speech, Former Finance Minister Margaret Mwanakatwe said the Government would undertake an exercise to rebase the Gross Domestic Product, an exercise last conducted in 2012.
“The rebasing of the Gross Domestic Product will provide reliable and updated information on the current size and structure of the national economy. The rebasing will also provide Government with an opportunity to update and develop appropriate social and economic indicators to measure progress in achieving the objectives under the National Development Plans and the Sustainable Development Goals.” She said.