Zambia expects to reduce budget deficit to 5.1% of GDP by 2021
(Ecofin Agency) - Zambia is planning to reduce its budget deficit to 5.1% of GDP in the three coming years, the country’s finance minister indicated yesterday September 7, 2018.
According to news published by Reuters, this is part of the country’s strategy to improve its economic performance.
Zambia also wants to stabilize inflation to 6%-8% and increase domestic revenues to at least 19% of GDP. This strategy coupled with an increase of the foreign reserves should help attain at least 4% of economic growth in the three coming years.
Zambia initiated reforms to reduce its external debt which was $9.3 billion in June 2018. Thanks to these reforms, the country should be able to get a $1.3 billion loan from the International Monetary Fund (IMF) which raised concerns over the viability of the country’s debt.
Let’s note that according to IMF, Zambia’s economic growth should stand at 4%.
Moutiou Adjibi Nourou