IMF SAYS ZAMBIA’S ECONOMY IS FARING WELL

The International Monetary Fund (IMF) mission says the Zambian economy has fared well in 2012.

And the IMF mission says Zambia’s economy prospects of 2013 look good with real Gross Domestic Product (GDP) growth expected to be at 8 per cent while inflation is expected to at 6 percent.

According to a media release issued by the IMF, real GDP growth is likely to hit 7.3 per cent, a development IMF described as impressive, especially in the current uncertain global economic environment.

The IMF further noted that inflation is expected to exceed the Bank of Zambia target of 7 per cent by the end of 2012 due to rises in food prices.

However, the IMF says despite the rises of inflation, inflation will still remain well under control.

The mission further praised central bank for keeping inflation in check.

And on revenue, the IMF says improved revenue administration by the government has resulted in a better revenue performance than expected.

The IMF explains that overrun on wages and goods and services contributed in the expenditure of the budget going up.

Meanwhile, the IMF mission has welcomed the introduction of the policy rate by the Bank of Zambia.

The mission says the policy rate will greatly assist in modernizing the implementation of the monetary policy in Zambia.

And the IMF mission has congratulated government on the successful launch of Zambia’s Eurobond.

The IMF mission says it welcomes government’s decision to use Eurobond funds
in the 2012-2013 National Budget.

And the IMF mission has advised the Zambian government to keep civil servant wages in line with the budget.

The mission explained that any further increase in civil service wages beyond what has been budgeted will result in an increase in capital spending.

ZANIS