Macroeconomic Forecast Zambia

November 2007 | Macroeconomic Forecasts

Based on recent data we have made some minor revisions to our 2007 and 2008 estimates: real GDP growth looks a bit stronger and the inflation picture somewhat more benign. The continuous strong performance by the kwacha, driven by exports and FDI inflows, is helping to keep a lid on local currency energy costs, but Zambia still faces serious electricity supply problems. A necessary but politically difficult requirement is a major hike in domestic tariffs, which would, however, put upside pressure on inflation.

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