By Balewa Zyuulu
The Zambia Institute for Policy Analysis and Research -ZIPAR-says government is on course to actualizing the 2023 macroeconomic objectives centered on growing the economy.
As enshrined in the 2023 national budget, government is targeting to attain a real GDP growth rate of at least 4.0 percent, reduce inflation to within the target band of 6-8 percent by the end of the year, maintain international reserves above 3 months of import cover, and limit domestic borrowing to not more than 3.0 percent of GDP.
ZIPAR Executive Director Herrick Mpuku says the country’s economy is now regaining momentum after undergoing a period of severely weak macroeconomic fundamentals, manifesting in high inflation, depressed output, high fiscal deficits, and unstable and weakening Kwacha.
Dr. Mpuku says although on the other hand the cost of living seems to be unsustainably high, the problem has been sorted out for the public sector workers by the 12 percent salary increment while the vulnerable continue to be cushioned through the social cash transfer.
He is however of the view that to stimulate economic growth for improved livelihoods, it will require sturdiness in staying the course of fiscal fitness which includes strengthening public finance management systems, sealing revenue leakages, curtailing wasteful spending, containing debt contraction, and enhancing domestic revenue mobilization.