All You Need To Know About Zambia Macroeconomic Outlook | zambia macroeconomic outlook

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Zambia's macroeconomic outlook is considered quite good. It is expected to grow around 6% per annum. This is a bit lower than the national average but still shows good progress for such a developing economy. Given the positive outlook, there are some reasons that this level of growth can be sustained over the long term.

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Zambia's macroeconomic outlook is considered quite good. It is expected to grow around 6% per annum. This is a bit lower than the national average but still shows good progress for such a developing economy. Given the positive outlook, there are some reasons that this level of growth can be sustained over the long term.

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One of the main drivers of Zambia's macroeconomic performance is its high level of current account deficit. A current account deficit refers to the difference between gross domestic product (GDP) and the value of foreign assets. As one would expect, any country that has a large current account deficit tends to have a poor credit rating. However, as bad as the credit rating is from a global perspective, it is actually a positive thing in certain circumstances. In Zambia, current accounts deficits tend to be caused by poor economic management coupled with low investment returns. In other words, the money borrowed by Zambia from outside sources such as borrowing from abroad (such as those from the Chinese or Indian communities) may not be easily repaid.

Another driver of Zambia's economic growth is its strong agricultural sector, which is largely protected by both local and international trade barriers. Although agriculture contributes only around 10% of GDP, it is highly diversified with cattle, coffee and tobacco being just a few of the more common products. International trade barriers are mostly related to beef and pork, although they do sometimes apply to seafood and sugar as well. Overall, the protection afforded by trade barriers facilitates the access of goods and services that otherwise might be out of reach due to trade barriers. In addition, increased foreign direct investment (FDI) has helped improve competitiveness over time.

The recent economic slowdown was most notable in the mining sector, which was one of the main pillars supporting the economy. In Zambia, however, the impact of the global financial crisis has significantly lessened business activity and employment levels are now showing signs of slackening. As such, job opportunities are starting to become limited. Moreover, increased FDI has helped improve the quality of employment in the informal sector. This has helped Zambia increase macroeconomic outlook as well as inflation.

The key drivers of Zambia's economic growth are the country's two major sources of foreign revenue: natural resources (in terms of gold, coal and gas) and tourism. Tourism contributed the lion's share of the fiscal revenue in previous years but recent downturns in the global economy have forced the sector to focus on profitability. Other contributors to the macroeconomic picture include agriculture, construction and manufacturing, and the micro-economic activities . . . . . . of households, businesses and government.

Zambia's macroeconomic indicators continue to support the view that the country is on the right track to recovery. Economic indicators including growth in gross domestic product (GDP), employment, consumer price index, and consumer demand growth are all encouraging. However, it is important to note that all of these indicators depend on the sustainable adjustment of price and wages levels in a rapid economic cycle. For this reason, it is important that the Zambian authorities to implement policies to mitigate economic pressures and make structural changes to boost competitiveness, foster greater income through enhanced productivity and promote greater international competitiveness.

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