Zambia: Ex Post Assessment of Longer-Term Program Engagement: Update
IMF Staff Country Reports, July 20, 2011
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- Canonical URL
- Zambia: Ex Post Assessment of Longer-Term Program Engagement: Update
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Bibliographic details
- Published: July 20, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781462315345.002
Executive summary and context
- Despite improved economic growth, poverty in Zambia remained formidable and called for fiscal consolidation to contain the domestic debt and interest payments that jeopardized macroeconomic stability and social spending.
- Macroeconomic outcomes during ECF-2 were particularly strong.
- The global financial crisis significantly affected copper prices.
- A well-articulated medium-term economic program would help Zambia to strengthen resilience and raise growth rates.
Key findings
- Poverty remained a major challenge in Zambia despite gains in economic growth.
- Domestic debt and interest payments posed risks to macroeconomic stability and to social spending.
- Macroeconomic performance under the ECF-2 arrangement showed particularly strong outcomes.
- External shocks—specifically the global financial crisis—had significant effects on copper prices, influencing Zambia’s economy.
Priority areas for future programs
- Laying the groundwork to sustain low inflation.
- Infrastructure development.
- Mobilizing domestic revenues.
- Financial sector development.
Policy implications and recommendations
- Fiscal consolidation to contain domestic debt and interest payments and protect social spending.
- Design and implement a well-articulated medium-term economic program to strengthen resilience and raise growth rates.
- Prioritize measures that support low inflation, infrastructure expansion, enhanced revenue mobilization, and deeper financial sector development.
Subject tags and keywords (as provided)
- Subject: Capital spending, Expenditure, Financial markets, Financial sector development, Inflation, Prices, Public financial management (PFM), Revenue administration
- Keywords: banking sector, Capital spending, central bank, CR, debt relief, Financial sector development, FINScope Zambia, GDP, Global, IMF staff, Inflation, interest rate, ISCR, monetary policy, revenue performance, spending, Sub-Saharan Africa, Zambia
Zambia: Ex Post Assessment of Longer-Term Program Engagement: Update — July 20, 2011; IMF Staff Country Reports 2011, 197; Pages: 21; DOI: https://doi.org/10.5089/9781462315345.002
Content in this bundle
- 1. Zambia: Cross Country Comparison, 2000–10