Despite the Zambian economy showing some signs of recovery after the 2019 economic woes, the country still faces challenges in boosting and sustaining economic growth, an economic expert said on Tuesday.
Zambian President Edgar Lungu recently declared that the country’s economic prospects for 2020 are positive after the economic turmoil experienced in 2019.
The views were backed by Finance Minister Bwalya Ng’andu who stated that economic growth rate in 2020 was expected to be above three percent and is expected to continue to grow despite current challenges.
While acknowledging that the economic prospects could be good this year compared to 2019, economist Salwindi Natolo said the economic fundamentals that have been a source of concern have still not been tackled.
He said in an interview that the problem of high expenditure as well as the increasing debt levels will result in economic projections not moving in the right direction.
The government, he said, needed to maintain a high level of fiscal discipline and control its appetite to spend money on unnecessary things.
Zambia, he said, still faces the problem of debt which was getting the biggest share of resources in debt servicing, adding that as long as the government does not tackle the problem of debt, it will continue to hinder economic growth.
“Expenditure and debt are likely to grow and so in terms of projection for our economy, we are not moving in the right direction. By now we would have started seeing reduction in expenditure,” he said. Enditem