IMF OUTLINES ECONOMIC FEARS FOR ZAMBIA

The International Monetary Fund fears Zambia is unlikely to contain inflationary pressure within the targeted 7 % by year-end, due to escalating food prices in the country.

John Wakeman-Linn, who has been leading an IMF review delegation to the Southern African country has warned.

Recent Central Statistical Office data has revealed an inflation rate of 6.8 % for the month of October, up from 6.4 % in September.

The CSO has attributed the rising inflationary pressure to relative increases in prices of both food and non-food items, inclusive of the staple food, maize meal.

And the IMF mission delegation has noted Zambia’s impressive economic performance, forecasting 2013 GDP growth at 8 % with a 6 % inflation rate, despite the gloomy global economic picture.

Meanwhile, the 7.3 % 2012 GDP growth has been upheld, in addition to commendation of this year’s 4.1 % budget deficit, which has been attributed to better than expected revenue administration

But the IMF has advised Zambia to ensure strict national budget execution, especially on civil service emoluments expenditure, which might threaten development project financing, if not kept in check.