(3 minutes read)
Finance Minister of Zambia Situmbeko Musokotwane has presented his second budget, while indirectly admitting that Zambia’s economic growth as measured by the Growth Domestic Product (GDP) has slowed down. Its GDP growth rate has dropped from almost 5% in 2021 to the projected 3% by end of 2022. the delay in the onset of rains was to blame for this slowdown
Finance Minister of Zambia Situmbeko Musokotwane has presented his second budget, while indirectly admitting that Zambia’s economic growth as measured by the Growth Domestic Product (GDP) has slowed down. Its GDP growth rate has dropped from almost 5% in 2021 to the projected 3% by end of 2022. the delay in the onset of rains was to blame for this slowdown.
The Budget indicated that there are continued concerns on lack of liquidity. Drying up of credit to industry and agriculture persisted for the entire year. The economy has continued to grow albeit at a slower rate. GDP is projected to grow by 3% compared to a recovery of 4.6% in 2021. The target set for 2023 is a 4% growth in GDP, which is less than the growth rate of 2021.
Situmbeko blamed the slowing down of the recovery on the late onset of the rains, despite the fact that Zambia’s main export commodity copper enjoyed a relatively better price on the international market. Another reason for the lackluster performance was underperformance of the construction sector.
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The 2022 budget pledged to continue the infrastructure drive through the Public Private Partnership (PPP)model including the prestigious Lusaka – Ndola dual carriage. The project is yet to be awarded.
