President Lungu said the economic prospects for 2020 are positive. He said projections include a real growth rate of three per cent and inflation to be maintained within the range of six to eight per cent.
President Lungu said this during the Annual Greetings of the Diplomatic Corps at State House on Thursday.
“In addition, the fiscal deficit is expected to reduce to 5.5% and domestic revenue mobilization is projected to increase to at least 22% of Gross Domestic Product (GDP). Fiscal consolidation will continue to be a priority to ensure sustainable and inclusive growth,” President Lungu said.
“Furthermore, I wish to announce that this year, the Zambian Government will continue to anchor our efforts on the five development strategic areas of the Seventh National Development Plan. These are economic diversification and job creation; poverty and vulnerability reduction; enhanced human development improvement; development inequalities reduction, and creating a conducive governance environment for a diversified economy. I therefore appeal to all of you, for your continued unwavering support,” he stated.
He said there is potential for improved partnerships with other governments, given Zambia’s focus on economic diversification as well as many investment opportunities Zambia offers.
He emphasized that Zambia continues to offer a favourable business environment based on it’s strategic location in the region.
“However, like many other countries in the Southern African Region and beyond, the Zambian economy during the rest of 2019 was negatively affected by various issues notably, adverse climate conditions caused by poor rainfall during the 2018/2019 farming season,” President Lungu said.
“This, in turn, negatively affected agricultural production, and electricity generation which led to spill-over effects in other sectors. Economic growth was also affected by a decline in copper output, coupled with lower copper prices caused by a reduction in global demand,” he observed.
And in a vote of thanks, Dean of the Diplomatic Corps Jeronimo Chivavi, who is also Mozambique High Commissioner to Zambia, observed the need for greater collaboration in addressing the effects of climate change.
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